Germany's controversial role in the crisis

Anger at the "austerity dictates" and fears of German dominance over the continent are growing in Europe's crisis states. Is Germany a power-hungry profiteer of the crisis or a role model and saviour of the euro?

The French newspaper Le Monde published a "manifesto for a political union of the euro" on Sunday. The authors, a group of economists, journalists and political scientists, want to encourage a debate on the future of Europe. France's government should be quick to take up the challenge, the left-liberal daily Libération urges: » more

The French newspaper Le Monde published a "manifesto for a political union of the euro" on Sunday. The authors, a group of economists, journalists and political scientists, want to encourage a debate on the future of Europe. France's government should be quick to take up the challenge, the left-liberal daily Libération urges: "François Hollande shares these ideas in part, however he is careful not to champion them to French audiences. Because in fact he's in no hurry to start reforming Europe's treaties lest he divide his own ailing majority. We shall see how much longer he can remain inactive, especially if the [extreme right] Front National comes out of the European elections victorious, and the pressure from Germany to change the treaties grows. But by refusing to join a debate you risk having an agenda forced on you. Like the markets did between 2010 and 2013 - and we now know at what cost."

Germany is pursuing a misguided Europe policy and the federal government is responsible for the critical state of the EU, philosopher Jürgen Habermas writes in the left-liberal daily La Repubblica: » more

Germany is pursuing a misguided Europe policy and the federal government is responsible for the critical state of the EU, philosopher Jürgen Habermas writes in the left-liberal daily La Repubblica: "Since May 2010, the German government has done all it can to adopt a semi-hegemonial position. ... The German government has forced its own idea of how to overcome the economic crisis [on the member states], and obliged the countries concerned to adopt harsh 'reforms'. But in so doing, the government has shirked its pan-European responsibility for the drastic consequences of a socially one-sided austerity policy. It is in our national interest to avoid once again falling into the semi-hegemonial power position which the European Union has allowed us to leave behind, and which paved the way for two world wars. Without a visible change of policy regarding Europe we can no longer rely on the good will of our neighbours, whose patience we have put to the test with our harsh crisis policies. We must signal our willingness to make Germany's leadership role structurally dispensable, and adopt other initiatives in a gesture of loyalty to the smaller member states."

The winner of this year's Nobel Peace Prize will be announced on Friday. The left-liberal daily Der Tagesspiegel looks back to last year when the award went to the European Union, and still finds the decision unjustified: » more

The winner of this year's Nobel Peace Prize will be announced on Friday. The left-liberal daily Der Tagesspiegel looks back to last year when the award went to the European Union, and still finds the decision unjustified: "Europe fails to fulfil the promise that bound its member states together for decades: that the Union not only promotes peace among former enemies, but also increases the prosperity of all. For a long time now there can be no more talk of that in Southern Europe. Now, rather than forging ties the euro divides, and the hopes for a better future are fading. German politicians specialise in explaining to the rest of the continent why the economic and financial policy they propagate is the only feasible one. But they're unable - and often unwilling - to try and persuade people that not only Germany but the entire Eurozone will benefit from this. ... And so the financial crisis is bringing out the old ghosts and rifts are opening up between people who only recently still felt they were united."

The Day of German Unity commemorates the start of Europe's decline, columnist Giorgos Malouchos comments in the liberal online daily To Vima: » more

The Day of German Unity commemorates the start of Europe's decline, columnist Giorgos Malouchos comments in the liberal online daily To Vima: "That's when the crisis gripping Europe today had its beginnings: with a 'common' Europe that's on the verge of collapse and a Greece that runs the risk of sinking into civil war-like chaos. And all that for the good of Germany's hegemony and currency. ... Today everyone talks about Germany's hegemony in Europe and no one disagrees. ... However no one associates this hegemony with a policy of national interests that's being passed off as European, but with the austerity policy instead. And all of this is taking place in a Europe that pretty much no longer exists, at least not on the decision-making level. ... We Greeks in particular know full well what the Europe of German hegemony has brought us: 30 percent unemployment, a 25 percent drop in GDP, economic and social decline and the menace of the neo-Nazis."

The Greek director Alexandros Avranas has won the Silver Lion at the Venice Film Festival for his entry Miss Violence - a film about domestic violence. In the weekly Proto Thema publisher Themos Anastasiadis draws a parallel with the effects of the austerity policy imposed by the creditors and describes Angela Merkel as Miss Violence: » more

The Greek director Alexandros Avranas has won the Silver Lion at the Venice Film Festival for his entry Miss Violence - a film about domestic violence. In the weekly Proto Thema publisher Themos Anastasiadis draws a parallel with the effects of the austerity policy imposed by the creditors and describes Angela Merkel as Miss Violence: "What the Germans have done to us goes beyond all the sick scenarios in the film. ... In the TV debate between Merkel and Steinbrück the chancellor's obsession was obvious: ECONOMISE, ECONOMISE, ECONOMISE. It's a hysterical conviction that salary cuts and the confiscation of private property can contribute to recovery and development. I don't know where Merkel gets the idea that this strategy can work. In Greece it certainly won't. The German Miss Violence's strategy is leading to the same result with which the film begins: the one who is least to blame commits suicide - in other words, the Greeks."

German pragmatism has preserved the Eurozone from an even worse crisis, comments Pierre Veya, editor in chief of Le Temps, in the left-liberal daily La Libération: » more

German pragmatism has preserved the Eurozone from an even worse crisis, comments Pierre Veya, editor in chief of Le Temps, in the left-liberal daily La Libération: "'Whither Europe?' This question could be put another way: 'What do the Germans want?' Germany will soon go to the polls. With its economic clout alone it dominates its European partners, perhaps more than it has ever done in the post-war era. Berlin has forced on them its strategy for bailing out the Mediterranean countries, forced the adoption of a debt brake in national legislations and authorised the ECB to pursue practices that run counter to official German doctrine. Many Europeans believe Germany is acting out of national self-interest. But its support for Europe is sincere and in many regards exemplary. Its pragmatism has enabled Europe to steer clear of severe crises. And few are the countries that can give Germany a lesson in good governance."

The early indicators of the Organisation for Economic Co-Operation and Development (OECD) point to growth in most of the big member states. But the crisis is far from over, Guntram Wolff, director of Brussels' Bruegel Institute, warns in the liberal business daily Il Sole 24 Ore, calling on Germany to do more to promote growth: » more

The early indicators of the Organisation for Economic Co-Operation and Development (OECD) point to growth in most of the big member states. But the crisis is far from over, Guntram Wolff, director of Brussels' Bruegel Institute, warns in the liberal business daily Il Sole 24 Ore, calling on Germany to do more to promote growth: "There are three major steps to boost German growth and bring the recession to a more definitive end. Firstly, the level of public investment in Germany is among the lowest in the EU. The lack of public investment hinders growth. So Germany would do well to spend some of its savings on this. … Secondly, the conditions for immigrants could be further improved. ... Thirdly, certain areas of the services sector are over-regulated. Liberalisation would increase this sector's productivity."

According to a poll put out by the BBC, Germany is the most popular country in the world. The Germans themselves are those most confused by this new twist, writes the weekly paper Die Zeit: » more

According to a poll put out by the BBC, Germany is the most popular country in the world. The Germans themselves are those most confused by this new twist, writes the weekly paper Die Zeit: "Until now it was like this: we Germans had got used to accumulating trade surpluses and then moping around in a corner because nobody liked us. ... We were a nation of eager beavers, respected and feared by others, but also laughed at, as if we were cheating ourselves out of the meaning of life with our industriousness, without even noticing it. ... We Germans also had a huge capacity for longing. We dreamed of what it would be like to be a little bit more Latin: a life on the piazza, a lively public sphere, quick-witted small talk, taking delight in all things beautiful. ... Now we don't really know if we should be happy about the BBC survey. Can it be in our interest for the penny pinching Swabian housewife to become a universal ideal? What will become of our longing to be elsewhere?"

Faced with the economic and monetary crisis, the people of Europe no longer believe in the European project, the conservative daily Lidové noviny comments regarding the study put out by the Pew Research Center in Washington: » more

Faced with the economic and monetary crisis, the people of Europe no longer believe in the European project, the conservative daily Lidové noviny comments regarding the study put out by the Pew Research Center in Washington: "The EU is the sick man of Europe. It is losing it's legitimacy in the eyes of the people at breakneck speed. Alienation is growing between the people of Europe, one which is by no means confined to demonstrators in Athens painting Hitler moustaches on posters of Angela Merkel. Only a couple of years ago Europe-optimists thought a European public sphere was being born. Now it's disappearing before our very eyes. That must worry the European optimists. Well-meant initiatives to strengthen the European identity have proven unable to counter the trend sparked by the crisis of the Eurozone."

Germany has been accused by many of aspiring to gain a new position of dominance in Europe with the aid of stringent austerity dictates. Columnist Derek Scally rejects this theory in the left-liberal Irish Times: » more

Germany has been accused by many of aspiring to gain a new position of dominance in Europe with the aid of stringent austerity dictates. Columnist Derek Scally rejects this theory in the left-liberal Irish Times: "The German hegemony argument tends to overlook how much ground Berlin has already conceded. Initial Berlin resistance to bailouts gave way to conditional aid and then agreement to break the link between sovereign and private debt and to allowing bank recapitalisations from the ESM bailout fund. As with each previous concession, the bank recapitalisation deal was festooned with conditions. But a concession to mutual liability in Europe is a long way from the euro zone German politicians told their voters they were joining... The idea of German hegemony overlooks how Berlin enjoys varying levels of support in the crisis from Finland, the Netherlands and Austria. Regular backing has come, too, from Sweden, Poland and Denmark - admittedly none of which are euro zone members."

France's Socialists published a policy paper on the weekend in which they severely criticise the crisis policy of German Chancellor Angela Merkel. The Socialists are throwing a spanner in the works of German-French relations, the conservative daily Le Figaro writes: » more

France's Socialists published a policy paper on the weekend in which they severely criticise the crisis policy of German Chancellor Angela Merkel. The Socialists are throwing a spanner in the works of German-French relations, the conservative daily Le Figaro writes: "Nothing is less responsible than blaming Angela Merkel and Germany's Europe policy for the growing problems plaguing our country. For months now confidence has been dashed between Angela Merkel and François Hollande. But the worst thing is that the Elysée thinks this little manoeuvre has a chance of succeeding. It's one thing for Greece, Italy or Spain to complain about the austerity measures that have been imposed on them. But to imagine that France can burn its bridges with Germany in the current crisis would be to fly in the face of the European project. If what the Socialist Party, the government and François Hollande want is the death of Europe, let them continue in this fashion."

The Southern Europeans' demands for unlimited solidarity from Germany are unjustified, writes Algimantas Šindeikis, chief editor of the weekly magazine Veidas: » more

The Southern Europeans' demands for unlimited solidarity from Germany are unjustified, writes Algimantas Šindeikis, chief editor of the weekly magazine Veidas: "Those who are relying on solidarity in their predicament have forgotten their own minimal obligations regarding the common good. Are the citizens of the countries that stuck to the rules to cover all the costs of the countries whose citizens didn't? … The participants in the protests in Rome, Madrid, Nicosia and Athens agree on one thing: Germany must pay whatever it takes for the bailouts. … Following these European 'solidarity debates' the ECB study was published, according to which the net assets of German households are worth less than those of Cypriot households. . … For years, the citizens of Southern European states paid no taxes on the bulk of their income, and this is one of the main reasons why they are richer than the Germans, who have always diligently paid higher taxes."

Cyprus's bailout marks a turning point in the European crisis, Greek historian Antonis Liakos observes: » more

Cyprus's bailout marks a turning point in the European crisis, Greek historian Antonis Liakos observes: "The deposits will be transferred from banks and countries whose stability is threatened by the economic downturn and where there is the danger of a debt haircut to countries where the banks guarantee deposits, even with negative interest rates. The German banks will profit from this, or the banks of the peripheral countries will come under German control. Germany, as Europe's strongest economy, dictates the terms by which the European nations must govern their economies and societies, by undermining their national sovereignty, institutions and democratic achievements. Germany assumes the role of the theoretical super-ego of European capitalism because it is the only economy running a surplus and benefits from the euro by paying minimal or negative interest while the other economies borrow money at interest rates that are far higher than their economic growth rate. This only accentuates the differences. For all these reasons the Cypriot crisis represents a turning point in the European crisis."

German Chancellor Angela Merkel is often portrayed as an enemy in Southern European anti-austerity demonstrations. In cartoons and on posters the chancellor is depicted with a Hitler moustache or an SS uniform. The journalist Hans Rauscher condemns such resentment against the Germans in the left-liberal daily Der Standard: » more

German Chancellor Angela Merkel is often portrayed as an enemy in Southern European anti-austerity demonstrations. In cartoons and on posters the chancellor is depicted with a Hitler moustache or an SS uniform. The journalist Hans Rauscher condemns such resentment against the Germans in the left-liberal daily Der Standard: "It is pure nonsense to say that by insisting on a serious debt policy in return for billions of euros in bailout funds, Germany has ruined the states of Southern Europe. Saying that Merkel-land has done this to set up a sort of 'Fourth Reich' over Europe is both idiotic and dangerous. ... Yes, austerity hits many Greeks and Italians hard. Yes, the euro induced less competitive countries to finance a pseudo-boom with cheap money. But only the Greeks and the Italians, not the Germans, are accountable for the dysfunctionality of their states. On EU matters Austria now increasingly agrees with Germany. And with the Netherlands and Finland, that is with the net contributors who don't want to go on forever financing a lack of seriousness and false recipes on the part of others."

The German sociologist Ulrich Beck writes in his latest book German Europe that his country is now in a position to impose its will on other countries without using the force of arms. Greek columnist Giorgos Malouchos agrees and points to Greece as an example in the left-liberal online news portal To Vima: » more

The German sociologist Ulrich Beck writes in his latest book German Europe that his country is now in a position to impose its will on other countries without using the force of arms. Greek columnist Giorgos Malouchos agrees and points to Greece as an example in the left-liberal online news portal To Vima: "In reality Greece doesn't have its own government, because our government lacks the power to take even the least relevant decision. Instead it acts like an informal 'German party' within the country. Where else in the Western world is there a minister for another country, like Hans-Joachim Fuchtel [Parliamentary State Secretary and Merkel's special envoy to Greece] is? Not even in the difficult period after the civil war [1946 to 1949] was there such a thing. ... The three coalition parties have effectively opted for the status of a German protectorate. They unquestioningly take orders from Germany and execute them. A disaster of growing proportions which could have unforeseeable consequences at a national level is being sold to us as our salvation. ... One wonders what the Germans will do if the country one day faces a national adventure [like a civil war], something no reasonable person can rule out at this point."

The drama over Cyprus has once again shown that Germany is calling the shots in Europe's crisis management, journalist Gideon Rachman writes in the liberal daily Financial Times, explaining why Germany's leadership position could also prove fatal for Germany itself: » more

The drama over Cyprus has once again shown that Germany is calling the shots in Europe's crisis management, journalist Gideon Rachman writes in the liberal daily Financial Times, explaining why Germany's leadership position could also prove fatal for Germany itself: "After the Cyprus crisis … it looks increasingly like this is a German Europe - because the direction of a continent in crisis is being shaped, above all, by the ideas and preferences of politicians and officials in Berlin. … German policy makers hope that all this is temporary. Once things get back to normal and new EU structures are in place, they think it may no longer be necessary for Germany to lead quite so overtly. But that is probably a pious hope. The eurozone crisis is far from being over and it is not clear what new EU structures will emerge at the end of it - or whether they would dilute or strengthen German power. That leaves Germany holding the ring: writing the cheques, enforcing the rules and increasingly making them up, as well. That is a dangerous situation for Europe - and ultimately for Germany itself."

The German sociologist Ulrich Beck writes in his latest book German Europe that his country is now in a position to impose its will on other countries without using the force of arms. Greek columnist Giorgos Malouchos agrees and points to Greece as an example in the left-liberal online news portal To Vima: » more

The German sociologist Ulrich Beck writes in his latest book German Europe that his country is now in a position to impose its will on other countries without using the force of arms. Greek columnist Giorgos Malouchos agrees and points to Greece as an example in the left-liberal online news portal To Vima: "In reality Greece doesn't have its own government, because our government lacks the power to take even the least relevant decision. Instead it acts like an informal 'German party' within the country. Where else in the Western world is there a minister for another country, like Hans-Joachim Fuchtel [Parliamentary State Secretary and Merkel's special envoy to Greece] is? Not even in the difficult period after the civil war [1946 to 1949] was there such a thing. ... The three coalition parties have effectively opted for the status of a German protectorate. They unquestioningly take orders from Germany and execute them. A disaster of growing proportions which could have unforeseeable consequences at a national level is being sold to us as our salvation. ... One wonders what the Germans will do if the country one day faces a national adventure [like a civil war], something no reasonable person can rule out at this point."

German Chancellor Angela Merkel is often portrayed as an enemy in Southern European anti-austerity demonstrations. In cartoons and on posters the chancellor is depicted with a Hitler moustache or an SS uniform. The journalist Hans Rauscher condemns such resentment against the Germans in the left-liberal daily Der Standard: » more

German Chancellor Angela Merkel is often portrayed as an enemy in Southern European anti-austerity demonstrations. In cartoons and on posters the chancellor is depicted with a Hitler moustache or an SS uniform. The journalist Hans Rauscher condemns such resentment against the Germans in the left-liberal daily Der Standard: "It is pure nonsense to say that by insisting on a serious debt policy in return for billions of euros in bailout funds, Germany has ruined the states of Southern Europe. Saying that Merkel-land has done this to set up a sort of 'Fourth Reich' over Europe is both idiotic and dangerous. ... Yes, austerity hits many Greeks and Italians hard. Yes, the euro induced less competitive countries to finance a pseudo-boom with cheap money. But only the Greeks and the Italians, not the Germans, are accountable for the dysfunctionality of their states. On EU matters Austria now increasingly agrees with Germany. And with the Netherlands and Finland, that is with the net contributors who don't want to go on forever financing a lack of seriousness and false recipes on the part of others."

The debt crisis is increasingly endangering European cohesion, historian and commentator Timothy Garton Ash writes in an article published by the left-liberal daily El País: » more

The debt crisis is increasingly endangering European cohesion, historian and commentator Timothy Garton Ash writes in an article published by the left-liberal daily El País: "'We have made Italy, now we must make Italians' - thus the old saying. Today we have made the euro and the crisis of the euro is unmaking Europeans. People who felt enthusiastically European 10 years ago are reverting to angry national stereotypes. 'Hitler-Merkel' said a banner carried by young Cypriot protesters earlier this week. Next to those words there was an image of the European flag, its yellow stars on a blue background now angrily crossed out in red. Sweeping negative generalisations are heard about 'north' and 'south' Europeans, almost as if these were two different species. ... As parts of Europe became more anti-German so parts of Germany became more anti-European. A vicious spiral looms into view, like a twister on a rural highway in the American midwest."

Making Cyprus keep its capital in the country by force contradicts the entire logic of the European project, the liberal-conservative business daily Il Sole 24 Ore writes indignantly, holding Germany responsible: » more

Making Cyprus keep its capital in the country by force contradicts the entire logic of the European project, the liberal-conservative business daily Il Sole 24 Ore writes indignantly, holding Germany responsible: "Limiting the free movement of capital within a monetary union is an absurd and disastrous policy. One of the cornerstones of the entire European community, not just the monetary union, is being struck down. … The case of Cyprus is clear proof that leaving it up to the countries in crisis to solve their own problems will only create more trouble spots. And this has repercussions for the community which are far more serious than the leak that had to be blocked initially. The German notion that everyone should clean up their own backyard first may take up a principle cherished by Goethe. But it increasingly clashes with problems that endanger the survival of the monetary union and by extension the construction of Europe."

Germany and its chancellor are charting the course for European economic policy but they're steering in the wrong direction, the daily Tages-Anzeiger writes: » more

Germany and its chancellor are charting the course for European economic policy but they're steering in the wrong direction, the daily Tages-Anzeiger writes: "What Chancellor Merkel really wants is a union of countries that take responsibility for their own fate. The European Central Bank as the lender of last resort at the helm of a true banking union, or even euro bonds, are ideas that are abhorrent to her. Despite all assurances that it will spur growth, such an austerity policy remains that of the Swabian housewife: save more, spend less, work more. In view of the gross economic discrepancies in Europe, it is highly improbable that Merkel will be successful. How are the deficit sinners supposed to get out of this mess if they have to cut salaries and government spending while they're saddled with higher interests and lack any influence on the currency? The real danger for Europe isn't that German is being spoken again, but that the Germans are holding to a flawed economic policy."

The bailout plan for Cyprus is the final act in the drama of the ill-fated monetary union, economist and columnist Ewald Engelen predicts in the left-leaning weekly De Groene Amsterdammer: » more

The bailout plan for Cyprus is the final act in the drama of the ill-fated monetary union, economist and columnist Ewald Engelen predicts in the left-leaning weekly De Groene Amsterdammer: "In the coming months an incredible financial, economic, social and political battle will play out as the world looks on. According to estimates, by the time the troika is finished with Cyprus its economy will have shrunk by one quarter to one third. ... The euro enforces a policy which treads basic democratic rights underfoot, pits different segments of the population against each other and obliges member states to sacrifice their own children on the altar of the German export machine. For three years we've been told that if the euro fails that will be the end. Cyprus teaches us the opposite. ... Eurosceptics couldn't have wished for better evidence to back their argument."

Following the Cyprus bailout the liberal conservative daily Jyllands-Posten praises Angela Merkel as the sole leader to point the way forward: » more

Following the Cyprus bailout the liberal conservative daily Jyllands-Posten praises Angela Merkel as the sole leader to point the way forward: "For a long time German Chancellor Angela Merkel has been the target of unfair attacks. The simple fact is, however, that you can't stimulate the necessary growth in the EU if the economy isn't running properly. The only one who has dared to say this in a Europe that suffers from a catastrophic lack of efficient leaders is Angela Merkel. The fact that the restructuring work is hurting in many countries must not slow down the quest for an economically responsible, internationally competitive Europe. That is the correct strategy."

The drama over Cyprus has once again shown that Germany is calling the shots in Europe's crisis management, journalist Gideon Rachman writes in the liberal daily Financial Times, explaining why Germany's leadership position could also prove fatal for Germany itself: » more

The drama over Cyprus has once again shown that Germany is calling the shots in Europe's crisis management, journalist Gideon Rachman writes in the liberal daily Financial Times, explaining why Germany's leadership position could also prove fatal for Germany itself: "After the Cyprus crisis … it looks increasingly like this is a German Europe - because the direction of a continent in crisis is being shaped, above all, by the ideas and preferences of politicians and officials in Berlin. … German policy makers hope that all this is temporary. Once things get back to normal and new EU structures are in place, they think it may no longer be necessary for Germany to lead quite so overtly. But that is probably a pious hope. The eurozone crisis is far from being over and it is not clear what new EU structures will emerge at the end of it - or whether they would dilute or strengthen German power. That leaves Germany holding the ring: writing the cheques, enforcing the rules and increasingly making them up, as well. That is a dangerous situation for Europe - and ultimately for Germany itself."

The Euro Group is destroying Cyprus's economy with its decision to involve the banking sector in the rescue package, the English-language daily Cyprus Mail contends: » more

The Euro Group is destroying Cyprus's economy with its decision to involve the banking sector in the rescue package, the English-language daily Cyprus Mail contends: "The fact is that Cyprus was small and inconsequential enough for Germany, the ECB and the IMF to make an example of it without the risk of contagion for the rest of the eurozone. They did not dare bail in depositors in the case of Ireland, Greece and Spain's banks, ignoring the EU policy and legislation, which they felt obliged to pursue for Cyprus. The big irony is that for months we have been hearing IMF, Eurogroup and Commission officials insisting that Cyprus' public debt should be sustainable. It would be anything but sustainable now that they have killed off all economic prospects for the next five to 10 years."

The drama over Cyprus's bailout is a further example of Germany's fight for dominance over Europe, journalist Jakob Augstein writes in his column on the news portal Spiegel Online: » more

The drama over Cyprus's bailout is a further example of Germany's fight for dominance over Europe, journalist Jakob Augstein writes in his column on the news portal Spiegel Online: "It looks like economics, but in reality it's power politics. The Germans are using debt to put the people of Europe in chains. 'If history shows anything, it is that there's no better way to justify relations founded on violence, to make such relations seem moral, than by reframing them in the language of debt - above all, because it immediately makes it seem that it's the victim who's doing something wrong,' US ethnologist and Occupy activist David Graeber once wrote. As in the past, it is now the underdogs who are being insulted. Those who have debts have made themselves guilty. … But this is all a lie. So far the Germans have not just paid for the crisis, they have also profited from it. There are the savings on interest payments Germany has made since the crisis begun, totalling 10 billion euros for last year alone. And then there's the interest paid by the debtor states. This is the reality of the euro crisis: Athens' poor are paying the rich in Germany."

Spanish Europe expert José Ignacio Torreblanca travelled to Sofia to participate in a conference on the economic crisis in Europe. He notes in his blog with the left-liberal daily El País that he was surprised to find Bulgaria discussing the same problems as Spain: » more

Spanish Europe expert José Ignacio Torreblanca travelled to Sofia to participate in a conference on the economic crisis in Europe. He notes in his blog with the left-liberal daily El País that he was surprised to find Bulgaria discussing the same problems as Spain: "The first thing that strikes you is that Europe is so immersed in the crisis that [here in Bulgaria] almost as soon as you step off the plane you can start a debate with the politicians of the two leading political forces. … And even though you don't know much about their country you can still understand everything they say. The parallels in the debates are astounding: austerity, growth, a crisis of democracy, Europe's role, Germany's role, populism. We may not have a European 'demos', but apparently the Europeans are all talking about the same issues. That's a start. … The example of Bulgaria shows us that austerity is not enough to provoke a popular uprising. Austerity is a powder keg, but the sparks that cause it to explode are the lack of politicians setting a good example and the perception of corruption."

Just in time for the EU's summit meeting this Friday in Brussels, the German government has passed a balanced draft budget. The austerity-loving model pupil Germany could end up dividing the EU, the liberal daily Tages-Anzeiger fears: » more

Just in time for the EU's summit meeting this Friday in Brussels, the German government has passed a balanced draft budget. The austerity-loving model pupil Germany could end up dividing the EU, the liberal daily Tages-Anzeiger fears: "Merkel would do better to act a little more humbly in the presence of her EU partners. As an export nation Germany has benefited from the euro more than anyone else. Even the euro's crisis years have been big business for the Eurozone's largest member. The government in Berlin is getting fresh cash for zero interest on the financial markets because investors are seeking refuge in Europe's safe havens. So Germany is benefiting from the crisis. The model pupil could come to be viewed as a dogmatist who pursues national interests without taking its partners into account. Everyone must cut costs, but Angela Merkel could well afford to slow down a little in this endeavour. It's detrimental when Germany achieves its austerity targets quicker than necessary while other euro countries fall further and further behind."

The economic situation in Europe's crisis countries is hardly improving, while Germany's economy is performing better than it has done in years. The liberal business paper Les Echos suggests tongue in cheek that Germany should become more like France, so as to narrow the gap between the two countries: » more

The economic situation in Europe's crisis countries is hardly improving, while Germany's economy is performing better than it has done in years. The liberal business paper Les Echos suggests tongue in cheek that Germany should become more like France, so as to narrow the gap between the two countries: "The key elements of the cure: immediate adoption of a 35-hour week at full salary, a higher minimum wage, strict taxation of businesses and other economic players, a lowering of the retirement age to 62, a doubling of administrative procedures, the number of bureaucrats and especially of teachers, among other measures. ... On closer examination, the average German only stands to gain in terms of employment and buying power from such changes, which would then pay off when election time rolls around. Any expert will tell you that in this way the principal discrepancies between the German economy and those of its partners can be eliminated. But even if Germany submitted itself to this 'French cure', vigilance is called for. At any moment it could once more be overcome by the demons of collective success."

In the early 1930s the German austerity policy destroyed the monetary system based on the gold standard, and today it is destroying the euro, columnist Wolfgang Münchau writes in the online version of news magazine Der Spiegel: » more

In the early 1930s the German austerity policy destroyed the monetary system based on the gold standard, and today it is destroying the euro, columnist Wolfgang Münchau writes in the online version of news magazine Der Spiegel: "In both cases there was a system of fixed exchange rates, back then the gold standard, today the euro. There was a policy of procyclical insanity supported by the establishment, a policy of saving until recession was the only possible outcome that led to a debt trap and mass unemployment. In Germany the Great Depression ended in a tragedy. Italy has voted for a comedian. ... Grillo embodies the protest against the establishment that has saddled the country with an economic policy that is politically unbearable and economically dysfunctional. Consequently Grillo is indirectly the true opposition leader in Germany - because ultimately it's Angela Merkel's policies that are foisting this asymmetrical adjustment on Europe. ... For that reason we will now see a cycle of elections, technocrat governments, fresh elections with a probable victory for Grillo and a new phase that will end in Italy's exiting the Eurozone."

In his speech on Europe's future on February 22, German President Joachim Gauck assured other EU member states that Germany does not want to dictate European policy. Europe needs more Gaucks, Lluís Bassets writes in his blog with the left-liberal daily El País: » more

In his speech on Europe's future on February 22, German President Joachim Gauck assured other EU member states that Germany does not want to dictate European policy. Europe needs more Gaucks, Lluís Bassets writes in his blog with the left-liberal daily El País: "More Europe doesn't mean a German Europe or a Europe subject to the Germans' dictates. More Europe means a Germany that is European through and through, in which no one provokes or humiliates the other partners. This is what a German politician, President of Germany Joachim Gauck, said a few days ago. … His speech shows the other face of Germany, a response to the silences and reserve of German Chancellor Angela Merkel on European issues. … He even dared to say, in German, that English should be the common language of the European public sphere on a continent where everyone should speak at least two languages. Ideas that are open to discussion, also at a European level, but which testify to a profound commitment to Europe. If we want a more integrated and better Europe, we need more Gaucks."

Berlusconi's success in the parliamentary elections can be traced back to Germany's policies and its austerity dictates for Europe, journalist Stefano Casertano writes in the German version of the online magazine The European: » more

Berlusconi's success in the parliamentary elections can be traced back to Germany's policies and its austerity dictates for Europe, journalist Stefano Casertano writes in the German version of the online magazine The European: "The principle is simple: what do Italians hate? Austerity. What did Berlusconi promise? The end of austerity. ... A vote for Berlusconi was a vote against Germany. ... His laconic magic is the product of German foreign policy. Many Italians, at least those who voted for him, believe that now the big 'euro fraud' will come to light. Germany is a fantastic country with remarkable economic power, but the advantages that it reaps from the euro are disproportionate to what it puts into it. ... The idea is simple: 'You gave us austerity, we give you Berlusconi.' ... Don't ask why the Italians should vote against Berlusconi, but why they vote for him. ... And also how a big country like Germany should use its leadership role in Europe."

The strong results obtained by Berlusconi and Grillo in conjunction with Monti's poor showing are being interpreted as Italians having voted against the EU austerity plan. But the country is too quick to pin the blame on the EU, economist Lucrezia Rechlin argues in the liberal-conservative daily Corriere della Sera: » more

The strong results obtained by Berlusconi and Grillo in conjunction with Monti's poor showing are being interpreted as Italians having voted against the EU austerity plan. But the country is too quick to pin the blame on the EU, economist Lucrezia Rechlin argues in the liberal-conservative daily Corriere della Sera: "There is some truth to the observation that this was a vote against austerity and against Europe. ... Europe could in theory have been more lenient towards the countries in trouble. ... But the fact that a harsher stance was adopted is not in my opinion the result of cynical calculations on Germany's part but a lack of trust in a credible alternative. A distrust that is rooted in our own weakness, namely in the lack of social cohesion and public trust in the government. What is our steadily growing public debt but the result of a policy that only seeks approval; that is based on waste and subsidies because it lacks the power and the farsightedness to aim for a different balance that pursues the common good?"

The new Cypriot president is popular in Berlin not just because of his adherence to the austerity policy, the conservative daily Kathimerini notes, fearing that Anastasiades and Merkel will retable the Annan Plan that failed in 2004 and that foresees the reunification of the island as a confederation divided into two constituent states: » more

The new Cypriot president is popular in Berlin not just because of his adherence to the austerity policy, the conservative daily Kathimerini notes, fearing that Anastasiades and Merkel will retable the Annan Plan that failed in 2004 and that foresees the reunification of the island as a confederation divided into two constituent states: "Anastasiades has never made any bones about his convictions regarding the Annan Plan [he supported it in 2004] and the austerity memorandum, which creates a truly explosive combination. The economic submission of Cyprus may not just be a temporary phase. It could be the beginning of a new tragedy that continues with the signing of a new Annan Plan inspired by the Germans. ... Through the austerity memorandum, political pressure could be exerted on Cyprus's 'new' leadership so that it is faced with a fait accompli and accepts it. Or in other words, it is forced to approve a solution to the Cyprus dispute on the basis of the shameful Annan Plan."

In view of Germany's huge influence in the European debt crisis, sociologist Ulrich Beck coins the term Merkiavelli to compare the German Chancellor's power politics with the teachings of philosopher Niccolò Machiavelli - whose The Prince was written 500 years ago - in the left-liberal daily El País: » more

In view of Germany's huge influence in the European debt crisis, sociologist Ulrich Beck coins the term Merkiavelli to compare the German Chancellor's power politics with the teachings of philosopher Niccolò Machiavelli - whose The Prince was written 500 years ago - in the left-liberal daily El País: "Many see Angela Merkel as the uncrowned queen of Europe. If we examine where the German chancellor draws her power from, we stumble on a typical feature of her behaviour: her almost Machiavellian versatility. The ruler, according to Niccolò Machiavelli, the first thinker on power, must only keep the promise made yesterday if it secures him an advantage today. ... However the Merkiavelli method may gradually be reaching its limits; after all, Germany's austerity policy has so far failed to be successful - on the contrary: the debt crisis now threatens Spain and Italy, and soon perhaps even France. ... Germany must decide between Europe being or not being. It has simply grown too powerful to have the luxury of not making any decisions."

During her visit to Cyprus on Friday German Chancellor Angela Merkel promised the struggling euro country the solidarity of its EU partners. The conservative daily Simerini calls for deeds instead of words: » more

During her visit to Cyprus on Friday German Chancellor Angela Merkel promised the struggling euro country the solidarity of its EU partners. The conservative daily Simerini calls for deeds instead of words: "For several reasons we demand this solidarity above all from Germany. Firstly because our relations with this large country have been and still are friendly, productive and effective in many areas, as Germany is well aware. Secondly, because in recent times the critical and for the main part ill-considered media reports and statements of German politicians have grown in number. And thirdly because we know that Cyprus has already become part of the election campaign in Germany. We expect the German chancellor to do everything in her power to ensure that Cyprus receives help and loans soon. It is neither in the interest of Germany nor of the Eurozone that Cyprus collapses or goes bankrupt. Beyond all the words and instructions we expect projects and solidarity in practice from Germany."

German Chancellor Angela Merkel is visiting the highly indebted Eurozone member Cyprus this Friday during a meeting of the conservative European People's Party. On Wednesday Merkel had stressed that the talks on EU aid for Cyprus were far from concluded and that Nicosia could not expect to receive special treatment. Berlin is creating uncertainty, the liberal daily Politis criticises: » more

German Chancellor Angela Merkel is visiting the highly indebted Eurozone member Cyprus this Friday during a meeting of the conservative European People's Party. On Wednesday Merkel had stressed that the talks on EU aid for Cyprus were far from concluded and that Nicosia could not expect to receive special treatment. Berlin is creating uncertainty, the liberal daily Politis criticises: "The citizens of Cyprus are increasingly worried by the statements from Berlin. … In particular the Chancellor's remarks that the talks on an EU bailout are nowhere near completion is causing concern about the liquidity problems in the public sector. All these remarks are creating the impression that everything is still open. … The Cypriot economy can neither cope with constant uncertainty and pessimism nor with a lack of liquidity. The Cypriot government must take the reins once more when it comes to leading public opinion."

In an interview in the Financial Times, German Chancellor Angela Merkel has called for more growth and less social welfare. In doing so the chancellor has voiced an uncomfortable truth, the liberal-conservative business paper Il Sole 24 Ore writes approvingly: » more

In an interview in the Financial Times, German Chancellor Angela Merkel has called for more growth and less social welfare. In doing so the chancellor has voiced an uncomfortable truth, the liberal-conservative business paper Il Sole 24 Ore writes approvingly: "Enterprise today means knowledge and innovation. This requires a radical change to the prosperity model. We Europeans must dispense with certain comforts to which we have grown too accustomed in order to create a dynamic system of prosperity. The state costs too much and is too inefficient. Cutbacks are needed, above all in the welfare state which - let us not deceive ourselves - is an important sheet anchor for us all. … We can (and must) start discussing what must be done, because there is no obligatory path. But the expenditure for the state, for civil rights and for financing our affluence - starting with the funding for education - must be brought back into balanced proportions."

Berlusconi has accused the Monti government of bowing to Germany's austerity dictates and thus leading Italy into the recession. The conservative daily ABC fears that Italy could drift into a dangerous brand of populism with the start of the election campaign: » more

Berlusconi has accused the Monti government of bowing to Germany's austerity dictates and thus leading Italy into the recession. The conservative daily ABC fears that Italy could drift into a dangerous brand of populism with the start of the election campaign: "The permanent state of emergency in the Italian political system has created a situation in which the elections that will be held in February will focus on those factors that are extremist and contrary to the European austerity policies. The moderate citizens who cherish stability could be left without political role models unless Monti decides to run for office. Berlusconi's presence will spur on the populist trend that wants to put a stop to everything the technocrats have done so far. … It wouldn't be surprising if Italy suddenly became the first big country where a significant political movement openly demands an exit from the euro. The danger of other countries being infected by this populist phenomenon could be lethal."

The German Social Democrats elected former finance minister Peer Steinbrück as their candidate for German chancellor on Sunday. Steinbrück plans to put a return to social justice at the centre of his election campaign. That's understandable but it could plunge Europe into considerable difficulties, the conservative daily Lidové noviny writes: » more

The German Social Democrats elected former finance minister Peer Steinbrück as their candidate for German chancellor on Sunday. Steinbrück plans to put a return to social justice at the centre of his election campaign. That's understandable but it could plunge Europe into considerable difficulties, the conservative daily Lidové noviny writes: "Germany, Europe's super paymaster, is beginning to think of itself again. And to a certain extent Europe's fate depends on this. ... The German parliamentary election next year won't be just about whether the Germans prefer Chancellor Angela Merkel to their former finance minister, Peer Steinbrück. It will decide whether the average German is still willing to live more frugally and modestly than he really needs to or whether he decides that ten years of gradual erosion of the social state are enough and that there must be a return to social welfare. For Europe, this desire could prove even more dangerous than the dilemma with Greece and Portugal."

Angela Merkel fully deserves her re-election as party leader, the liberal daily Corriere del Ticino writes: "In the end the facts have won out over prejudice. ... Angela Merkel and her government are no longer in the political crossfire over how they've dealt with the debt crisis. ... True, the crisis isn't over. But if the euro despite everything has survived and there is a glimmer of hope both for the financial markets and the ailing countries, the credit goes to Germany. ... Austerity as a condition for overcoming the crisis and a more solid growth - that is Merkel's line. Yes, she meets with resistance. Nevertheless, slowly but surely she's getting her way in Europe. ... The more EU states that allow themselves to be persuaded that this is the right path to follow, the better it will be for Switzerland."

Once it overcomes the debt crisis the Eurozone could become successful thanks to the changes enforced by Germany, economist Frederico Steinberg writes hopefully in the conservative business paper Expansión: » more

Once it overcomes the debt crisis the Eurozone could become successful thanks to the changes enforced by Germany, economist Frederico Steinberg writes hopefully in the conservative business paper Expansión: "If everything goes according to the plan of the Berlin-Frankfurt axis, the Eurozone will flourish thanks to a banking union, limited fiscal union and some form of economic and political union. But it will be a very German economic bloc: export-oriented, sceptical regarding Anglo-Saxon liberalism and likely reluctant to assume an international leadership role. … This transformation is based on the hegemonic dominance of the Germans, who since the debt crisis began have taken the reins of Europe in their hands and are forcing all the peripheral economies of the Eurozone (including France) into Germanisation as a condition for providing the necessary financial solidarity. … If this process is concluded successfully - that is, if we begin to see the light at the end of the tunnel before the people turn their backs on the European project and elect anti-European parties - the Eurozone will see its power and influence in the global economy increase considerably."

Thanks to high tax revenues, for the first time in five years Germany will have a balanced national budget this year, according to the estimates ... » more

Thanks to high tax revenues, for the first time in five years Germany will have a balanced national budget this year, according to the estimates of the Federal Ministry of Finances. But this is no cause for celebration, warns economist Heiner Flassbeck in the blog Nachdenkseite, noting that the euphoria only proves that Germany lacks a real economic policy concept "that could be compatible with a monetary union. Now all three major sectors in Germany, private households, companies and the state, are economising. Bravo! The other countries assume the role of debtors, and therefore of those who ensure that Germany's savings don't lead to a collapse of the German economy due to lack of demand. According to all the prognoses, next year and in the years that follow we can expect this 'division of labour' to continue. … Because of the individualist economic thinking prevalent in politics and the power of the creditor in the crisis it won't be easy to adopt a new approach. The general tendency to ignore the bull in the china shop and focus on glueing together the broken cups is a complicating factor here. Therefore what is needed is a major political effort on the part of all the debtor states to turn around the upside-down strategy for fighting the crisis."

In Italy Pierluigi Bersani has been voted the leading candidate of the centre-left alliance for the parliamentary elections, to be held in spring 2013. Bersani announced that if he wins the austerity program would remain in place, but he would aim to do more to stimulate economic growth. The liberal daily Diário de Notícias hopes Bersani will find a way to put up some resistance to Angela Merkel: » more

In Italy Pierluigi Bersani has been voted the leading candidate of the centre-left alliance for the parliamentary elections, to be held in spring 2013. Bersani announced that if he wins the austerity program would remain in place, but he would aim to do more to stimulate economic growth. The liberal daily Diário de Notícias hopes Bersani will find a way to put up some resistance to Angela Merkel: "Bersani's election points to next year bringing changes in several areas of EU policy, particularly in the Eurozone. His alliance is currently leading the polls, and the Italians seem no longer willing to accept a Berlusconi government. ... If Bersani becomes head of government this would promote political changes in the major economies of the Eurozone and liberate them from Berlin's semi-dictatorship. Because then it would no longer be only Hollande's France and Rajoy's Spain that question (each in their own way) the strategy imposed by Merkel. Particularly since the austerity policy has failed to produce the desired results. ... Perhaps the time has come to reach out for the goal of economic success in a different way, by adjusting politics to this purpose."

The new loans won't solve Greece's problems but they will help the speculators and Angela Merkel's election campaign, the liberal daily Kurier complains: » more

The new loans won't solve Greece's problems but they will help the speculators and Angela Merkel's election campaign, the liberal daily Kurier complains: "The ones who benefit are the gamblers in the hedge funds who can now be certain they have a bombproof deal. The Greek state will buy back its worthless bonds from them with the 'bailout' money from the rest of Europe. One can hardly imagine a more sophisticated form or redistribution from the bottom up. … And all this because it's politically expedient? In Germany, Angela Merkel is hoping to be re-elected in 2013. So from her point of view there can be no sustainable, i.e. expensive solution for Athens for the time being. Because that would mean the waiving of debts, and that would apparently be too much to expect of the German (and Austrian) voters. Merkel wants to avoid informing the voters of the true state of affairs at literally any cost. This is why this debt haircut in instalments is being stage-managed. But it won't make the least bit of difference to the plight of the Greeks."

Norbert Lammert, the president of the German parliament, avoided directly criticising the Czech Republic on his visit to Prague last week. In his words, Berlin has problems with almost every country in the EU. Bearing in mind all they do for Europe the Germans deserve more respect, the conservative daily Lidové noviny writes: » more

Norbert Lammert, the president of the German parliament, avoided directly criticising the Czech Republic on his visit to Prague last week. In his words, Berlin has problems with almost every country in the EU. Bearing in mind all they do for Europe the Germans deserve more respect, the conservative daily Lidové noviny writes: "Europeans don't even like the Germans when they pitch in billions of euros to help find a solution to budget problems in Southern Europe. And the way things look now Germany won't have an easy time in the negotiations over the EU budget for 2014-2020 either. ... Germany wants to please everybody in order to push through the EU budget. But in this way no one will be satisfied. And then we'll see yet another episode in the series 'Why doesn't anyone in the EU like the Germans?'. But thinking European is so deeply rooted in the mindset of the German elites that they'll be able to withstand this as well. Many Czechs don't like the Germans either. But the Germans don't expect Europeans to like them anyway. Nevertheless they do deserve to be treated with objectivity - and respect."

Germany is not so happy about Obama's win, the online paper To Vima claims, hoping that the new-old president will prevent Europe from being turned into a German colony: » more

Germany is not so happy about Obama's win, the online paper To Vima claims, hoping that the new-old president will prevent Europe from being turned into a German colony: "Obama's re-election is a thorn in the German government's side. It believes Romney, as a proponent of extreme liberalism, would be better and more suited to Germany's interests. Obama bothers the German government because more than once he has tried to 'brake' the Greek disaster. Moreover he doesn't believe the austerity drive can 'save' the countries and economies. Obama and Merkel, the US and the 'German Europe', are now entering a new phase in their relations. No one can predict where it will lead - precisely because Berlin is sticking so doggedly to its course. Obama must now decide whether he will allow Europe to be turned into a German 'colony', as Germany, aided by the debt crisis, has been trying to do for the past three years."

German Chancellor Angela Merkel does not see the euro crisis coming to an end within the next five years. Now the time for more discipline has come, she said on Saturday at a regional conference of her party, the Christian Democrats. The liberal business paper Diário Económico calls on Merkel to assume her responsibilities towards Europe: » more

German Chancellor Angela Merkel does not see the euro crisis coming to an end within the next five years. Now the time for more discipline has come, she said on Saturday at a regional conference of her party, the Christian Democrats. The liberal business paper Diário Económico calls on Merkel to assume her responsibilities towards Europe: "Merkel has once again prescribed the only treatment she knows and likes. But the EU can't take any more austerity. On one point she is right: a crisis of these dimensions takes years to resolve. ... Europe's problem is above all an economic one: it can't generate enough prosperity to pay off all the debts. The 'rescued' states that are stuck in a recession need lower interest rates and more time. ... Moreover northern Europe, which is profiting from the crisis (Germany can borrow money for next to nothing), should increase its investments in the crisis countries. ... During her visit to Portugal Merkel has the chance to show that she can lead Europe with supportive policies. Otherwise she will be digging the graves of the euro and the EU."

Thousands of people gathered before the parliament building in Lisbon on Wednesday to protest against the austerity budget for 2013, which was approved on first reading in parliament. This is a sign that German Chancellor Angela Merkel's first visit to Portugal on November 12 won't be a pleasant occasion for either side, the liberal-conservative daily Diário de Notícias writes: » more

Thousands of people gathered before the parliament building in Lisbon on Wednesday to protest against the austerity budget for 2013, which was approved on first reading in parliament. This is a sign that German Chancellor Angela Merkel's first visit to Portugal on November 12 won't be a pleasant occasion for either side, the liberal-conservative daily Diário de Notícias writes: "It's clear that Portugal must not miss this rare opportunity to bring up the country's enormous problems, as well as point out that it won't be able to hold out for long under the present circumstances. No matter how you look at it, given the current state of the EU it won't be possible to overcome the crisis without and against Berlin - regardless of the fact that the budgetary discipline enforced by Merkel was a huge swindle and a monumental error."

On the one hand the Greeks call Angela Merkel a Nazi, and on the other many support the neo-Nazi party Golden Dawn. Political scientists Daphne Halikiopoulou and Sofia Vasilopoulou criticise such double standards on the London School of Economics' blog EUROPP: » more

On the one hand the Greeks call Angela Merkel a Nazi, and on the other many support the neo-Nazi party Golden Dawn. Political scientists Daphne Halikiopoulou and Sofia Vasilopoulou criticise such double standards on the London School of Economics' blog EUROPP: "But here lies the contradiction of Greek nationalism: while on the one hand it seems to be directed against those foreign powers that many Greeks hold responsible for the continuation of the crisis, alluding similarities between the current German involvement in Greek economic affairs with the Nazi invasion of the 1940s; on the other, at the same time over 400,000 Greek citizens have recently voted a domestic neo-Nazi party into Parliament with 18 seats out of 300. Recent polls estimate Golden Dawn support at over ten per cent. How can a country protest against the imposition of a perceived 'Fourth Reich' but at the same time support a real Nazi threat from within?"

The IMF has radically changed its course in dealing with the crisis and Germany in particular should follow its example, the left-liberal daily El País admonishes: » more

The IMF has radically changed its course in dealing with the crisis and Germany in particular should follow its example, the left-liberal daily El País admonishes: "The proposal to give the Spanish economy more time and relax the austerity policy should not go unheeded. It is part of a global reflection by the IMF on the negative repercussions of exaggerated austerity. And it is based not just on a tactical attempt at revival along Keynesian lines but on detailed studies that show that the negative impact of the austerity policy on economic growth could be twice or even four times what had been estimated up to now. It is the culmination of a momentous watershed in the IMF's vision of the crisis: from extreme orthodoxy to a new and promising realism. As many actors as possible - above all those who lead the European Union, with Germany at the helm, should try to understand and assimilate these conclusions."

The financial markets barely reacted on Thursday to rating agency Standard & Poor's downgrading of Spain's credit status to BBB-, just one notch above junk status. While the markets are working on the assumption that Spain will receive assistance from the EU bailout fund, Berlin is delaying the step because of the national elections in Germany, the liberal-conservative business paper Il Sole 24 Ore complains: » more

The financial markets barely reacted on Thursday to rating agency Standard & Poor's downgrading of Spain's credit status to BBB-, just one notch above junk status. While the markets are working on the assumption that Spain will receive assistance from the EU bailout fund, Berlin is delaying the step because of the national elections in Germany, the liberal-conservative business paper Il Sole 24 Ore complains: "Angela Merkel hopes to win the elections in September 2013 without any obstacles, or in other words without having to ask the Bundestag to approve further aid for the country's struggling European partners. Although the strategy has been obvious for weeks now, it's increasingly unclear whether it will actually be successful. The problem is less Athens than Madrid. ... Owing to the uncertainties regarding the terms tied to a bailout for Spain, which has passed the fifth austerity programme in less than a year, is hesitating to apply for one. Rajoy's procrastination may suit Merkel to a T, but ultimately it is blocking intervention by the ECB and slowing down the construction of a new, more effective governance of the Eurozone."

Merkel's visit to Athens has no significance for the Greeks and can do nothing to help save the country, blogger Pitsirikos writes: » more

Merkel's visit to Athens has no significance for the Greeks and can do nothing to help save the country, blogger Pitsirikos writes: "Thousands of Athenians demonstrated yesterday, as if it were Merkel who had elected this government and not them. But that's what we Greeks are like. We blame the Germans and the immigrants for our country's bankruptcy, as if they'd been in cahoots to destroy us. ... Merkel wants Greece to remain in the Eurozone. But it looks very much as if she's making fun of us, because any logically-minded person realises that Greece must leave the Eurozone on the double. Merkel's visit doesn't mean a thing. And when she comes next time or the time after that to officially and definitively conclude the sale of the country, no one will react and everyone will be submissive and well-behaved. Auf Wiedersehen, Mrs Merkel."

Merkel and Samaras have demonstrated in Athens that the fates of their countries are inextricably bound together, the news portal tagesschau.de notes with relief: » more

Merkel and Samaras have demonstrated in Athens that the fates of their countries are inextricably bound together, the news portal tagesschau.de notes with relief: "The Chancellor has guts. She could have met head of government Antonis Samaras and his cabinet on Crete, Rhodes or Santorin instead. Some faraway island in the sea. But she went right into the lion's den. It had to be the capital. This sends a strong message - the right message! ... The German-Greek friendship has come under severe strain. The bond which took decades to grow threatens to collapse, to go down the drain, as the saying goes. And the main reason for this is money. ... Shared money needn't cause a friendship to end. Europe is more than an idea or a community of interests. Today Europe is more than ever a community with a shared destiny. Samaras and Merkel have sent a strong message of solidarity in Athens."

Angela Merkel has shown courage and sent the right signals, the liberal business paper Financial Times writes: » more

Angela Merkel has shown courage and sent the right signals, the liberal business paper Financial Times writes: "She has also answered two opposing camps of critics at home: the Social Democrats on the left, who argue she has been too hard on the Greeks; and her coalition partners on the right who believe she has not been tough enough. It is a difficult balancing act that the German chancellor has managed with some skill in recent months as Europe's debt crisis intensified. She gambled when she backed the European Central Bank's bond-buying programme, despite opposition from Jens Weidmann, Bundesbank president and did so again in flying to Athens. As for Mr Samaras, he now has to recognise the risks that Ms Merkel has taken. Only by swiftly completing the new austerity package and implementing long overdue structural reforms will he prove to still-sceptical Germans that Greece can be a trustworthy partner in Europe's recovery."

When she visits Athens Angela Merkel should think hard about how to keep Greece in the Eurozone, writes Europe correspondent Gavin Hewitt on his blog for the BBC: » more

When she visits Athens Angela Merkel should think hard about how to keep Greece in the Eurozone, writes Europe correspondent Gavin Hewitt on his blog for the BBC: "The meeting is a gamble. If there is chaos it will only underline for the German public that Greece is a lost cause. Angela Merkel, however, is making a calculation. She is signalling that she wants Greece to stay in the Eurozone. She has silenced German politicians who in early summer were saying a Greek exit held no fears for them. ... Sooner or later the big questions will have to be answered. Does Greece need a further restructuring of its debt as the IMF is hinting, or even a third bailout? In the meantime the Greek prime minister is warning that conditions in Greece are similar to those in the Weimar Republic in Germany in the 1930s. Plenty for Chancellor Merkel to think about."

Angela Merkel won't be bringing a single euro, the left-liberal daily To Ethnos writes warning the Greeks not to get their hopes up: » more

Angela Merkel won't be bringing a single euro, the left-liberal daily To Ethnos writes warning the Greeks not to get their hopes up: "Anyone who believes their executioner can save them is completely naive! Merkel is not coming to save the Greeks but to secure Germany's interests. This is why she will support Antonis Samaras' government: because it follows Berlin's dictates. Merkel will try to appease anti-German sentiment as much as possible. She will give a political performance and act as if she understands the suffering of the Greeks. But the Greeks are suffering precisely because of the policy she is imposing with the argument that there is no alternative to strict austerity. Merkel will say that she acknowledges the sacrifices the Greek people are making, and will therefore try to keep Greece in the Eurozone. And on that last point she will be speaking the truth. The German press is reporting that the government has already decided that expelling Greece from the Eurozone would be too risky."

Even if Angela Merkel has already excluded the possibility of more financial aid for Greece, the liberal business paper Handelsblatt sees her visit to Athens ... » more

Even if Angela Merkel has already excluded the possibility of more financial aid for Greece, the liberal business paper Handelsblatt sees her visit to Athens as "a trip that sends several important messages. Firstly, Merkel is signaling that she has decided to keep Greece in the euro club. Secondly she wants to back Samaras as she deems him to be on the right path. And thirdly she wants to test the Greek government's ability to introduce reform personally. Therefore Merkel's visit to Greece represents nothing less than a change of heart on the part of the chancellor. ... What clinched the matter was her visit to China at the end of August and China's urgent plea to stabilise the euro - and Greece. Merkel's realisation there was that Germany can't afford a global economic slump into which China and the US are also dragged, all because of Europe."

For the first time since the euro crisis began three years ago German Chancellor Angela Merkel is travelling to Greece. Athens is preparing for her visit on Tuesday with massive security operations. Merkel must finally recognise the terrible consequences of her austerity dictates, the conservative weekly Proto Thema demands: » more

For the first time since the euro crisis began three years ago German Chancellor Angela Merkel is travelling to Greece. Athens is preparing for her visit on Tuesday with massive security operations. Merkel must finally recognise the terrible consequences of her austerity dictates, the conservative weekly Proto Thema demands: "Before Merkel comes to Athens someone should show her a video of all that has happened to her guinea pig in recent days. Then she will see that her experiment has failed. And she will see that her test subjects have been driven so mad by the measures of the EU's and IMF's mad scientists that they are about to start eating each other and will end the experiment immediately. So what about Spain and Portugal? This is a good opportunity, Frau Merkel, to review the results of your experiment so far. ... With the troika, the technocrats, the austerity measures and the years of attacks on Greece you have driven everyone crazy. ... We hope that you take a look at this monster you have created in Greece, which will drag down with it into the abyss all Southern Europe and the rest of the EU."

Thousands of people protested in France, Spain and Portugal this weekend against their governments' austerity policies. Only if the crisis countries stick together can they defend themselves against the austerity dictates of the Germans, the liberal-conservative daily Diário de Notícias writes: » more

Thousands of people protested in France, Spain and Portugal this weekend against their governments' austerity policies. Only if the crisis countries stick together can they defend themselves against the austerity dictates of the Germans, the liberal-conservative daily Diário de Notícias writes: "The first demonstration of the Hollande era has shown that the French haven't forgotten the marriage of convenience between Sarkozy and Merkel. … We heard appeals for solidarity among the crisis countries to prevent the destruction of the EU to which Berlin is leading us. … We must be clear about the fact that it won't help just to talk about political changes in Europe. It is a question of efficiency, particularly when Germany, as the EU's major net payer, is sitting on the other side of the negotiating table. But it's good to know that there are alternatives and that they can be implemented in the crisis countries if they all speak with one voice."

The Greeks can protest as much as they want, Berlin doesn't want to listen, the left-liberal online paper To Vima writes: » more

The Greeks can protest as much as they want, Berlin doesn't want to listen, the left-liberal online paper To Vima writes: "Berlin wants full political and economic control in Europe, but it doesn't want to pay for it. ... Berlin doesn't want to take monetary measures that may not be successful and it doesn't want to spend money. It's not interested in stimulus measures and it sees the repression and social discontent not as real problems but as a normal stage in the process of adaptation [of Greece to the EU]. And precisely this approach has already turned half of Europe into a ticking time bomb. … Almost the entire planet is asking Germany to implement effective measures to overcome the crisis, but Berlin refuses to do so. And why should the Germans do this when they're actually benefiting from this crisis? ... At least the Germans are making sure we're not alone [in Europe with our protests]. This is perhaps the only ray of hope, before all hope dies."

German Finance Minister Wolfgang Schäuble praised his Portuguese counterpart Vitor Gaspar during the latter's visit to Berlin on Wednesday for his implementation of the "painful economy drive". Portugal is merely a guinea pig being used to demonstrate the correctness of Germany's instructions, the liberal business daily Jornal de Negócios writes: » more

German Finance Minister Wolfgang Schäuble praised his Portuguese counterpart Vitor Gaspar during the latter's visit to Berlin on Wednesday for his implementation of the "painful economy drive". Portugal is merely a guinea pig being used to demonstrate the correctness of Germany's instructions, the liberal business daily Jornal de Negócios writes: "This government that was elected to save us from bankruptcy represents an ideological agenda that it is trying to implement in the context of the austerity dictates. Schäuble's praise for Gaspar's efforts, which was clearly aimed at more than just encouragement, highlights the ideological umbilical cord between the two. Portugal is serving as a laboratory where Germany can prove to the other derailed countries of Southern Europe that the German model is the only true model. And our government is busy putting it into practice. Portugal is to be turned into an export economy like Taiwan or Singapore, with low wages and an irrelevant domestic market - controlled by multinationals that value the country for its ultra-liberal business environment."

Germany can leave the euro crisis if it wants to solve the euro crisis, the US investor George Soros writes in the state-run liberal daily Wiener Zeitung: » more

Germany can leave the euro crisis if it wants to solve the euro crisis, the US investor George Soros writes in the state-run liberal daily Wiener Zeitung: "In my judgment the best course of action is to persuade Germany to choose between becoming a more benevolent hegemon, or leading nation, or leaving the euro. ... If Germany left, the euro would depreciate. The debt burden would remain the same in nominal terms but diminish in real terms. The debtor countries would regain their competitiveness because their exports would become cheaper and their imports more expensive. ... The creditor countries, by contrast, would incur losses on their investments in the euro area ... therefore creditor countries would have an interest in keeping the depreciation within bounds. The eventual outcome would fulfill John Maynard Keynes's dream of an international currency system in which both creditors and debtors share responsibility for maintaining stability. ... It may come as a surprise, but the eurozone, even without Germany, would score better on standard indicators of fiscal solvency than Britain, Japan, or the US. A German exit would be a disruptive but manageable onetime event, instead of the chaotic and protracted domino effect of one debtor country after another being forced out of the euro by speculation and capital flight."

The EU member states eagerly awaited the German Constitutional Court's ruling on the ESM on Wednesday. The court now plays a key political role in the EU, the liberal daily Gazeta Wyborcza concludes: » more

The EU member states eagerly awaited the German Constitutional Court's ruling on the ESM on Wednesday. The court now plays a key political role in the EU, the liberal daily Gazeta Wyborcza concludes: "The constitutional judges have become the fourth key institution on the entire continent, after the European Parliament, the EU Commission and the European Council. They play a role in deciding Europe's future. Without the participation of Germany, the largest economy in the EU, the ESM could not exist. ... Experts warn that the German constitution of 1949 is not applicable to the current situation. ... Therefore a new constitution is needed that provides clear regulations for Germany's European policy to avoid the need to constantly wait for new rulings by the Constitutional Court. But at present the chances of a change are minimal. The Germans' enthusiasm for Europe has waned and the major parties are increasingly making use of anti-European sentiment."

Germany has too much power over the single currency, the conservative daily ABC warns, but praises the judges in Karlsruhe for indirectly counteracting this imbalance: » more

Germany has too much power over the single currency, the conservative daily ABC warns, but praises the judges in Karlsruhe for indirectly counteracting this imbalance: "The huge sense of suspense created by the Constitutional Court's decision on the creation of the European Stability Mechanism (ESM) has proven for the umpteenth time that the euro is turning not into a European currency but a projection of the old Deutschmark. And that Germany has a decisive influence through all channels on European monetary policy. For this reason - and even the court itself stressed this - the EU urgently needs to establish appropriate, democratically legitimised institutions. This is the only way to prevent one country from having a stronger influence than all the rest together when it comes to decisions that affect the entire Eurozone."

German Chancellor Angela Merkel will meet her Spanish counterpart Marian Rajoy for talks in Madrid today. She shouldn't abuse her vast power, the conservative daily El Mundo advises: » more

German Chancellor Angela Merkel will meet her Spanish counterpart Marian Rajoy for talks in Madrid today. She shouldn't abuse her vast power, the conservative daily El Mundo advises: "Angela Merkel arrives in Madrid with more power than Hitler had when he met with the dictator Franco in [the French-Spanish border town of] Hendaye [to persuade him to side with Germany in 1940]. … The chancellor benefits from being able to borrow money at around one percent interest while Italy and Spain are paying six or seven percent. But Germany should not pull the noose around Spain's neck too tightly because choking these two major nations will also endanger Germany's prosperity. Too much greed is unhealthy. The chancellor must stop abusing the situation. It would already be a good deal for her if Spain and Italy paid three to four percent for their debts and the risk premium was kept below 300 basis points while the Germans continue to pay just roughly one percent."

The German Foreign Minister Guido Westerwelle has said during a meeting with his Greek counterpart Dimitris Avramopoulos that the key to Greece's remaining in the Eurozone lies in Athens' hands. Last week several German coalition partners declared that a Greek exit is entirely possible. The left-liberal online newspaper To Vima criticises the Germans' stance: » more

The German Foreign Minister Guido Westerwelle has said during a meeting with his Greek counterpart Dimitris Avramopoulos that the key to Greece's remaining in the Eurozone lies in Athens' hands. Last week several German coalition partners declared that a Greek exit is entirely possible. The left-liberal online newspaper To Vima criticises the Germans' stance: "What are they trying to achieve by causing a panic a couple of days before Samaras arrives in Berlin? Before they have even heard what the prime minister has to say? Don't they see, don't they understand that this constantly aggressive stance is not helping Greece but only aggravating the social and political tensions? ... The crisis in Greece and all Europe can't be resolved with threats and blackmailing. European and above all German leaders must realise that half measures and panic reactions are jeopardising the future of the euro. And the price of a collapse of the Eurozone would be painful not just for already suffering Southern Europe, but for the rich North, too."

Despite a new complaint filed by eurosceptics against the ESM bailout mechanism, Germany's Constitutional Court plans to stick to its current schedule and announce its decision on the conformity of the new rescue fund with the German constitution on September 12. This is good news but doesn't change the fact that the Constitutional Court is holding the Eurozone hostage, the left-liberal daily La Repubblica comments: » more

Despite a new complaint filed by eurosceptics against the ESM bailout mechanism, Germany's Constitutional Court plans to stick to its current schedule and announce its decision on the conformity of the new rescue fund with the German constitution on September 12. This is good news but doesn't change the fact that the Constitutional Court is holding the Eurozone hostage, the left-liberal daily La Repubblica comments: "Once again the fate of the monetary union is in the hands of the German Constitutional Court. Karlsruhe [where the Court resides] is limiting the government's room for manoeuvre because every agreement Berlin signs with Brussels must previously have received the blessing of parliament. … Although as far as the legitimacy of the government of a democratic country is concerned, there's nothing to be said against this, it also means that on a regular basis Europe is being held hostage by a non-EU institution which it did not appoint and over which it has no jurisdiction. … Moreover this results in a contradiction. In the name of the German constitution the judges of Karlsruhe must preserve German sovereignty at the same time as Germany is calling on other EU countries to give up sovereignty in order to save the monetary union."

Former German chancellor Helmut Schmidt said on Tuesday in a talk show that the Germans cannot lead Europe because of their Nazi past. In saying this Schmidt summed up Berlin's true ambitions, writes columnist Giorgos Malouchos in the left-liberal online paper To Vima: » more

Former German chancellor Helmut Schmidt said on Tuesday in a talk show that the Germans cannot lead Europe because of their Nazi past. In saying this Schmidt summed up Berlin's true ambitions, writes columnist Giorgos Malouchos in the left-liberal online paper To Vima: "Why is he trying to tell his own country to forget its dream of dominating Europe? For a single reason: This is precisely what Germany has been aiming for with its crisis management for almost three years now. ... It is highly likely that Schmidt's voice won't be heard. ... Many still entertain the illusion that Germany's policy of the last three years is financially motivated and follows the logic of 'putting things in order'. But Berlin is using the crisis to achieve what Helmut Schmidt referred to: European dominance. And this is also the reason why Berlin refuses to change its policy even though there is not the slightest doubt that it is leading us to disaster."

German politicians called statements made by the Italian Prime Minister Mario Monti undemocratic at the beginning of the week, while the Italian daily Il Giornale on Friday labelled the German Federal Republic a "Fourth Reich" seeking to dominate other countries. The tone of discourse in Europe is becoming increasingly aggressive, writes the conservative daily Lidové noviny: » more

German politicians called statements made by the Italian Prime Minister Mario Monti undemocratic at the beginning of the week, while the Italian daily Il Giornale on Friday labelled the German Federal Republic a "Fourth Reich" seeking to dominate other countries. The tone of discourse in Europe is becoming increasingly aggressive, writes the conservative daily Lidové noviny: "Monti knew that he was provoking the Germans, whose Constitutional Court only endorsed the participation in the euro bailout with gritted teeth and on the condition of heightened parliamentary control. German politicians don't want to waive the rules of democracy just because of Italy's debts. So now we have the 'Fourth Reich'. ... And this is not the statement of some extremist anarchist current. The owner of the paper is the family of Silvio Berlusconi. ... France's president, in turn, is using the media to prompt Italy and Spain to relinquish part of their sovereignty. Parisian papers write about how the authorities in Naples have been paying retirement benefits to a woman who died nine years ago. With all these polemics, just where are the people of Europe?"

In the euro crisis above all Italy and Germany should be on guard against a revival of old prejudices, warns Giovanni di Lorenzo, editor-in-chief of the German weekly magazine Die Zeit. In the left-liberal daily La Repubblica he calls on politicians to take action against escalation in mutual insults: » more

In the euro crisis above all Italy and Germany should be on guard against a revival of old prejudices, warns Giovanni di Lorenzo, editor-in-chief of the German weekly magazine Die Zeit. In the left-liberal daily La Repubblica he calls on politicians to take action against escalation in mutual insults: "In my view there is a fatal lack of mutual understanding both in general public opinion and unfortunately also at the government level. In Italy there is a tendency to blame Merkel for Italy's problems - and at best she is expected to remedy them. … It's childish to expect mama to solve problems that have their roots in Italy. In Germany, for its part, there is an exaggerated proneness to self-pity. As if Germany was the only country that pays the debts of others. … Fortunately, so far there is no danger that Germany will go its own way. But to prevent this it is necessary to explain to the citizens of our country why certain decisions are imperative. The populists' hour of glory has not yet arrived, but it will keep drawing closer unless we put an end to this trend."

Monti's words were directed at Germany because unfortunately it has become a favourite pastime to use Germany as a scapegoat, the liberal daily Corriere del Ticino notes: » more

Monti's words were directed at Germany because unfortunately it has become a favourite pastime to use Germany as a scapegoat, the liberal daily Corriere del Ticino notes: "By ingeniously twisting the facts many agents are holding Germany and the Bundesbank responsible for the ongoing debt crisis. ... But the reality is different, and Prime Minister Monti knows this. But in a crisis everyone looks for someone to blame. Switzerland, which functions as an international scapegoat in the area of finances and taxes, has plenty of experience with this. The search for a scapegoat is an incorrect reaction that doesn't solve the problem and only seeks to shift the blame, one's own share too, onto others. … The austerity policy Germany is calling for no doubt also serves Germany's interests, but far more those of the Eurozone. Because the only chance it has of surviving is to reduce the mountain of debt, as Germany demands should be done."

The way German politicians have overreacted shows that Mario Monti has hit a German sore spot with his thoughts on the rights of national parliaments, the liberal-conservative business paper Il Sole 24 Ore writes mockingly: » more

The way German politicians have overreacted shows that Mario Monti has hit a German sore spot with his thoughts on the rights of national parliaments, the liberal-conservative business paper Il Sole 24 Ore writes mockingly: "Where was and where is the army of the indignant when with the Six-Pack [which strengthens the European Stability Pact] and the fiscal compact gave the EU the right to intervene in budgetary decisions made in parliament? Why was there no protest when among others Angela Merkel proposed a fiscal union that includes the renunciation of state sovereignty? ... The sacrifice of certain democratic mechanisms is regarded as a vital tool in overcoming the crisis. Why does the desire to give Berlin greater leeway to react in a timely and cost-effective way to the crisis trigger such a scandal? Perhaps there is a special law in Germany for 'applying double standards' that allows it to impose on others what it does not demand of itself."

The German Minister for Economics Philipp Rösler on Sunday once again talked of a potential Greek exit from the Eurozone. The conservative daily El Mundo says it detects a turning point in Germany's policy: » more

The German Minister for Economics Philipp Rösler on Sunday once again talked of a potential Greek exit from the Eurozone. The conservative daily El Mundo says it detects a turning point in Germany's policy: "Merkel appears to have changed her strategy. Spain and Italy must be protected to prevent the death of the single currency. A change of policy has been discernible since the meeting between [Spain's Minister for Economics] de Guindos and [German Finance Minister] Schäuble on Tuesday. Clear messages of support for the euro followed the meeting - first from Draghi, then from Merkel and Hollande, and finally yesterday from head of the Euro Group Juncker. … The change in direction could cause collateral damage. Merkel wants to force Greece out of the Eurozone because the general opinion in Germany is that the doubts about the monetary union will persist as long as Greece is part of it. … A protective wall is being built to prevent the impact a Greek exit would have from dragging down Spain and Italy, and by extension the entire EU."

Germany's leading role in the euro crisis is provoking resentment in other EU countries. This raises the question of whether the country wants to maintain its role in the event that the deeper EU integration German Chancellor Angela Merkel is calling for actually comes about, Eric Gujer writes in the liberal-conservative Neue Zürcher Zeitung: » more

Germany's leading role in the euro crisis is provoking resentment in other EU countries. This raises the question of whether the country wants to maintain its role in the event that the deeper EU integration German Chancellor Angela Merkel is calling for actually comes about, Eric Gujer writes in the liberal-conservative Neue Zürcher Zeitung: "The thankless task of watchdog will almost automatically fall to Germany; only it has the necessary economic and political clout. The new question for Germany is therefore also whether Berlin really wants to be forced into the role of headmaster, constantly admonishing partners who live beyond their means and putting them under pressure. The future structure of the EU depends on the far-sightedness of Germany policy: whether it becomes a robust entity based on nation states in which each member assumes responsibility for itself, or a supranational construction that requires constant supervision by a supreme power. The second option can't be in Germany's interest because disciplinarians may be necessary, but they're also unpopular."

In a TV interview the German Vice Chancellor and Minister for the Economy Philipp Rösler explained there would be no more financial aid to Greece if it did not fulfill its obligations. Rösler is putting Greece out of its misery, according to the left-liberal daily La Repubblica: » more

In a TV interview the German Vice Chancellor and Minister for the Economy Philipp Rösler explained there would be no more financial aid to Greece if it did not fulfill its obligations. Rösler is putting Greece out of its misery, according to the left-liberal daily La Repubblica: "Hawks can become vultures, intransigence can be a death blow. And this is exactly what happened yesterday. The German Minister for the Economy Philipp Rösler confirmed and strengthened rumours about Greece's impending exit from the monetary union. ... His comments segue with stories in the press [Der Spiegel magazine] about the alleged plans of the IMF to stop giving money to Athens. The words of the German minister are speeding up Greece's death throes. But the troika is not meeting in Athens to assess the situation until tomorrow. ... Perhaps Rösler only wanted to step into the tug of war between Athens and Brussels about extending the deadline for fulfilling its conditions. His words are certainly going to help eject Greece from the monetary union and cut the first sod for the grave that is being dug for the euro."

German Chancellor Angela Merkel's European policy is based on one-sided political interests, author Stephan Hebel writes in the left-liberal daily Frankfurter Rundschau: » more

German Chancellor Angela Merkel's European policy is based on one-sided political interests, author Stephan Hebel writes in the left-liberal daily Frankfurter Rundschau: "The euro crisis tells us one thing above all, and that's precisely what the German chancellor does not tell us: the common currency has always borne the traits of an imperialist, primarily nationally-oriented policy on the part of the German government. And it is exactly this German dominance that Merkel is attempting to salvage when she says she's bailing out the euro. ... If what she wanted was to implement a policy that she can explain in all honesty, she'd have to start working right away on a Europe that can withstand the passage of time, a Europe of solidarity. She would have to represent those who are developing strategies and democratic institutions for a true common economic policy. For a Europe in which the battle for balanced budgets and against profligacy have a firmly established place. And one where the strongest cannot enrich themselves at the expense of the weakest. But she has decided on a different course. Merkel's policy is based on special interests - without regard for losses and for as long as she can get away with it, until France or the Federal Constitutional Court slow her down somewhat. And she tells us that this playing with fire is in the interest of Germany. That is Angela Merkel's lie."

According to media reports German Chancellor Angela Merkel was virtually blackmailed into making concessions by the heads of government of Italy and Spain at the EU crisis summit at the end of last week. In truth Merkel relented only on formal, unimportant points while secretly scoring a major victory, the liberal-conservative business paper Il Sole 24 Ore writes: » more

According to media reports German Chancellor Angela Merkel was virtually blackmailed into making concessions by the heads of government of Italy and Spain at the EU crisis summit at the end of last week. In truth Merkel relented only on formal, unimportant points while secretly scoring a major victory, the liberal-conservative business paper Il Sole 24 Ore writes: "The Brussels summit was unanimously hailed as a triumph of European common sense over Germany's arrogant pigheadedness. Yet Merkel only made a couple of concessions and achieved more than generally believed. … Because in exchange for her allowances Merkel has pushed through the principle of a European supervisory authority. In the grips of a storm of Euro enthusiasm evderyone rejoiced. But more Europe means less sovereignty. That looks simple on paper but the problems will emerge in the coming months when it becomes clear that - de facto - it's not about yielding sovereignty to Luxembourg or Cyprus but to Germany."

Germany won't change its stance even if the euro collapses, the left-liberal online paper To Vima laments, commenting on the EU summit in Brussels: » more

Germany won't change its stance even if the euro collapses, the left-liberal online paper To Vima laments, commenting on the EU summit in Brussels: "We must finally realise that what many countries in Europe, as well as the international economy, perceive as a highly dangerous crisis, Berlin sees as a chance to increase its political, economic and institutional clout. We must finally stop underestimating the German leadership by claiming that it doesn't really know what it's doing. It knows perfectly well what it's doing, but we don't want to admit it. ... The Germans are incapable of governing their own strength. They have always been blinded by it. And now they are blinded by the 'dream' of a Europe under Germany's leadership. ... They won't give up this dream, even in the last moments of the downfall. … We will all pay for this intoxication with their own power. Europe will pay, and in the end the Germans will pay, too."

The EU heads of state and government meet to discuss a reform of the Monetary Union in Brussels today. Merkel's unambiguous rejection of euro bonds in advance of the meeting is only logical, writes the liberal daily Sme: » more

The EU heads of state and government meet to discuss a reform of the Monetary Union in Brussels today. Merkel's unambiguous rejection of euro bonds in advance of the meeting is only logical, writes the liberal daily Sme: "Merkel is first and foremost a German, and then a European. She formulated her refusal in drastic terms: As long as she lives, there will be no euro bonds; Germany won't be harmed for the sake of rescuing Europe. … For Merkel, euro bonds are unconstitutional both in Germany and in Europe. This makes any discussion redundant. If the euro bonds do eventually come it would only be if Brussels has the national budgets under its control. Only then would the chancellor be happy."

German Chancellor Angela Merkel has rejected proposals to pool Europe's debt with drastic words. There will be no joint liability in Europe "as long as I live", she said at a meeting on Tuesday. The left-liberal business paper Imerisia expresses annoyance at the Germans' unbending stance: » more

German Chancellor Angela Merkel has rejected proposals to pool Europe's debt with drastic words. There will be no joint liability in Europe "as long as I live", she said at a meeting on Tuesday. The left-liberal business paper Imerisia expresses annoyance at the Germans' unbending stance: "What a Europe! Instead of taking serious action and making joint decisions based on compromise the political leaders are engaging in an ineffectual and dangerous contest to see who can produce the worst cacophony. … The main protagonists are the Germans. They are peerless in their intolerance, their attacks go way beyond well-intentioned criticism and every agreement between partners is broken. All this is mainly done to impress the voters; because apparently the campaign for next year's parliamentary election has unofficially already begun. As harsh as it may sound, Greece of all countries is practically being treated like a punching bag."

German Chancellor Angela Merkel's crisis policies will lead straight to the biggest bankruptcy the world has ever seen, columnist Wolfgang Münchau fears in the news portal Spiegel Online: » more

German Chancellor Angela Merkel's crisis policies will lead straight to the biggest bankruptcy the world has ever seen, columnist Wolfgang Münchau fears in the news portal Spiegel Online: "A sudden end to the euro would be ruinous, particularly for Germany. First off, the European single market would not survive a return to fluctuating exchange rates. The German export industry could not recover from such a change. Add to that the threat of financial collapse. ... Angela Merkel's policy of procrastination is even more ruinous. With every month the burden on Germany's system increases. … If Spain and Italy now also seek the aid of the bailout fund, then Germany and France together would stand surety for more than four billion euros of debt. That's more than the annual income of both countries put together. We are heading straight for the biggest bankruptcy in history. I know only two solutions by which this scenario can be avoided: either the European Central Bank takes over the debts, or they are partially mutualised through euro bonds and a banking union. Merkel's policy leads us into Dante's Inferno. 'Abandon all hope, ye who enter here.'"

The mistakes that have led to the debt crisis in Southern Europe were made in the North and can only be corrected there, warns economist Paul Krugman in the left-liberal daily El País: » more

The mistakes that have led to the debt crisis in Southern Europe were made in the North and can only be corrected there, warns economist Paul Krugman in the left-liberal daily El País: "Ever since Greece hit the skids, we've heard a lot about what's wrong with everything Greek. Some accusations are true, some are false, but all are beside the point. Yes, there are big failings in Greece's economy, politics and society. But those failings aren't what caused the crisis that is tearing Greece apart and that threatens to spread across Europe. No, the origins of this disaster lie farther north, in Brussels, Frankfurt and Berlin, where officials created a deeply flawed monetary system, then compounded its problems by substituting moralizing for analysis. ... The only way the euro might - might - be saved is if the Germans and the European Central Bank realize that they're the ones who need to change their behavior, spending more and, yes, accepting higher inflation. If not - well, Greece will basically go down in history as the victim of other people's hubris."

After the elections in Greece German Chancellor Angela Merkel will be forced to soften her stance on the EU's austerity requirements whether she likes it or not, writes the leftist daily Népszava: » more

After the elections in Greece German Chancellor Angela Merkel will be forced to soften her stance on the EU's austerity requirements whether she likes it or not, writes the leftist daily Népszava: "The German chancellor is already being called 'Frau No' because she won't hear of relaxing the austerity policy. Last Saturday she announced once again that the credit agreement with Greece should not be altered. … At this point no one knows whether Greece will ever be able to clear its debts of approximately 327 billion euros. … This is questionable also because the Greek gross domestic product is dwindling from year to year while unemployment has already climbed to over 22 percent. … Greece is more divided than ever. But not only Greece must change and finally do its homework. Europe, too, must take on a new direction under Angela Merkel's leadership. For one thing is clear: the present course cannot continue."

As a means of stimulating the economies of crisis-stricken countries, economist Nouriel Roubini on Wednesday proposed to the German government that every German household should receive a gift voucher worth 1,000 euros for a holiday in one of these countries. But as long as Germany continues to capitalise on the crisis this good idea won't be put into practice, the business paper Diário Económico suspects: » more

As a means of stimulating the economies of crisis-stricken countries, economist Nouriel Roubini on Wednesday proposed to the German government that every German household should receive a gift voucher worth 1,000 euros for a holiday in one of these countries. But as long as Germany continues to capitalise on the crisis this good idea won't be put into practice, the business paper Diário Económico suspects: "It is an original approach to curbing the crisis in Europe: Merkel's government should give each German family a travel voucher on condition that they spend it on a holiday in one of the crisis countries. The 'doomsday prophet' is of the opinion that Germany's 'austerity mania' must end; the German government should lower taxes and increase salaries. Europe needs growth, Roubini believes, and he's right. … On the same day Germany auctioned of six-year inflation-indexed bonds at a negative interest rate of 0.31 percent. While Germany continues to profit from the crisis the travel checks will no doubt remain in Merkel's drawer."

The US has warned repeatedly in recent months of the threat posed by the euro crisis to the global economy and called for growth-stimulating measures. These demands conceal the US's fear of Germany growing too strong, the liberal daily La Stampa contends: » more

The US has warned repeatedly in recent months of the threat posed by the euro crisis to the global economy and called for growth-stimulating measures. These demands conceal the US's fear of Germany growing too strong, the liberal daily La Stampa contends: "It's true that the crisis affects all Europe, but it is no less true that Germany is swimming against the current in a flailing Europe. Its industry is thriving, its budget is healthy and the inflation rate is low. Thanks to the weak euro, Germany is also enjoying the benefits of a currency devaluation that can only work to the advantage of the world's second-largest exporter, without tarnishing its image. So Washington is beginning to ask whether Germany's predominance in Europe is really compatible with an 'Atlantic West'. … And whether there is perhaps a danger that Germany under Angela Merkel could be tempted to follow in the footsteps of today's China and set itself up as the world champion in exports, spurred on by a weak euro."

Above all Germany's crisis policy is endangering the Monetary Union, writes the liberal business magazine The Economist: » more

Above all Germany's crisis policy is endangering the Monetary Union, writes the liberal business magazine The Economist: "Only if Europeans share a sense of common purpose will a grand deal to save the single currency be seen as legitimate. Only if it is legitimate can it last. Most of all, it is a test of Germany. Chancellor Angela Merkel maintains that the threat of the euro's failure is needed to keep wayward governments on the path of reform. But German brinkmanship is corroding the belief that the euro has a future, which raises the cost of a rescue and hastens the very collapse she says she wants to avoid. Ultimately, Europe's choice will be made in Berlin."

Germany secured fresh capital for the next two years on Wednesday without having to pay any interest for it. That the heavyweights in the EU can continue to borrow on such conditions shows how sick Europe is, writes the daily Diário de Notícias: » more

Germany secured fresh capital for the next two years on Wednesday without having to pay any interest for it. That the heavyweights in the EU can continue to borrow on such conditions shows how sick Europe is, writes the daily Diário de Notícias: "The situation is also scandalous because Germany's terrorist economic policy is the main reason for the panic on the markets. The effective interest rate achieved is not thanks to Germany's economy but the result of an unbending policy that Berlin is foisting on the Eurozone with its austerity dictates. A situation in which crime pays off for Germany, at least as long as the Eurozone doesn't implode. Our prime minister spoke out against euro bonds, thereby taking sides with Germany - and against the opinions of other crisis-stricken countries. This submissiveness is immoral and goes against our national interests. He was elected to serve our interests, not to behave as if Portugal was the westernmost province of Prussia."

Hollande's victory is a good thing because it provides a broader basis for the Franco-German duo's European policy, writes the left-liberal Süddeutsche Zeitung: » more

Hollande's victory is a good thing because it provides a broader basis for the Franco-German duo's European policy, writes the left-liberal Süddeutsche Zeitung: "As opposed to 'Merkozy', 'Merklande' covers both the liberal-conservative and the social democratic spectrum in Europe. As a grand coalition they can ensure that Franco-German requirements are accepted by the other nations. An understanding with Hollande will protect the chancellor from becoming an isolated hegemonist within the EU. In Hollande Merkel has a partner with whom she can tackle the challenges facing Europe: restructuring the states' finances and developing a social model that is viable in today's world. If the two are successful the European success story will continue. If they fail, the citizens' fear, frustration and anger could sweep a national populist into the Élysée in 2017.

The government in the Netherlands fell on Monday because right-wing populists refused to accept EU austerity measures, while in the French presidential elections the right-wing extremist Marine Le Pen won almost 20 percent of the vote in the first round. These are clear signs that people reject Germany's austerity policy, the left-liberal daily Le Monde contends: » more

The government in the Netherlands fell on Monday because right-wing populists refused to accept EU austerity measures, while in the French presidential elections the right-wing extremist Marine Le Pen won almost 20 percent of the vote in the first round. These are clear signs that people reject Germany's austerity policy, the left-liberal daily Le Monde contends: "If not even the model pupils are able to apply the Eurozone's budgetary measures without causing a government crisis, then who can? ... The next few days will be decisive for Europe. The citizens are expressing their frustration and fear of the cuts that budgetary discipline entails in a reasonable way: through political channels. In a way Ms. Merkel is right: Europe is all about domestic politics nowadays. But the message sent by her fellow European citizens, first and foremost the French, doesn't tally with her ideas. They are signalling their rejection of the German crisis management model which puts austerity before stimulating economic growth."

The main reason for Nicolas Sarkozy's defeat in the French presidential elections held on Sunday is the way the great French nation has been humiliated by its German neighbours, writes author José María Carrascal in the conservative daily ABC: » more

The main reason for Nicolas Sarkozy's defeat in the French presidential elections held on Sunday is the way the great French nation has been humiliated by its German neighbours, writes author José María Carrascal in the conservative daily ABC: "I was surprised to see that among the reasons being discussed for Sarkozy's waning popularity the most obvious, the hurt pride of the French, the 'grandeur de la France', which the current president was supposed to embody and which was ultimately reduced to a caricature, is not mentioned. This is something that neither the French Right nor the French Left will forgive, although perhaps the Right, where his votes were, even less so. Perhaps all the talk of 'Merkozy' deceived the analysts to the point that they failed to see that we were facing a chancellor and her assistant. And this was no Franco-German entente based on equality and bad experiences in the past. ... The big problem now is how Europe will digest the Franco-German divorce. Or rather whether it is at all capable of digesting it."

The potential change of government in France, the government crisis in the Netherlands and the disappointing economic data for the Eurozone caused share prices to dip by an average of three percent on Monday, with French and Dutch bonds increasingly coming under pressure. Germany's financial policy dictatorship is coming to an end, writes the liberal daily La Stampa: » more

The potential change of government in France, the government crisis in the Netherlands and the disappointing economic data for the Eurozone caused share prices to dip by an average of three percent on Monday, with French and Dutch bonds increasingly coming under pressure. Germany's financial policy dictatorship is coming to an end, writes the liberal daily La Stampa: "The true loser [of the first round of the French presidential elections] is Angela Merkel, who gave outgoing president Nicolas Sarkozy her full-hearted support. With her - perhaps hypothetical - goal of budget stability only attainable through great sacrifice, Merkel symbolises orthodox financial management. But financial as well as socio-political developments are moving in the opposite direction, towards less stability. The Merkel formula that presents austerity measures as the only cure no longer seems sustainable. The predominance of her criteria is clearly being called into question, without however anyone knowing what could replace them in order to save the positive effects that globalisation has had in addition to the many negative ones."

Faced with the persisting economic crisis in Europe Germany must give up its egoistic stance, writes Italian diplomat Antonio Puri Purini in the liberal-conservative daily Corriere della Sera, calling on German Chancellor Angela Merkel to be more cooperative: » more

Faced with the persisting economic crisis in Europe Germany must give up its egoistic stance, writes Italian diplomat Antonio Puri Purini in the liberal-conservative daily Corriere della Sera, calling on German Chancellor Angela Merkel to be more cooperative: "The chancellor is hiding behind the complexities of the legislation negotiated with her partners [on the fiscal pact]. But given the markets' euro scepticism this is the time to head the European debate in a different direction, to seek a unified strategy. ... The government of the most important country in Europe can't confine itself to playing the accountant and continually reminding indebted countries of their obligations. This short-sightedness is surprising in a state that has always been a protagonist on the European stage. The country that benefits most from globalisation is the one that is sealing itself off the most, and is avoiding the task that befits it in view of its political clout."

Spain is being forced to act as scapegoat in view of the return of the euro crisis, writes the business paper Il Sole 24 Ore, but in reality Germany's crisis policies are to blame: » more

Spain is being forced to act as scapegoat in view of the return of the euro crisis, writes the business paper Il Sole 24 Ore, but in reality Germany's crisis policies are to blame: "It's easy to blame Spain for the jitteriness of the financial markets. ... But in reality it's Europe's non-existence that is being targeted by the markets. The attacks on Greece, Portugal, Spain, Italy and even France only serve to test a cohesion that doesn't exist. ... Angela Merkel believed that austerity and drastic measures for struggling countries would calm the markets, killing two birds with one stone: undisciplined partners would be brought to heel and the euro would be stabilised. But she misjudged the situation: for without growth this recipe won't work. ... Merkel is hoping she will be able to hold out until the elections in 2013 without having to ask the Bundestag to approve new bailouts for indebted countries."

The major European states, above all Germany and France, are concerned only with their own interests and driving Europe to the brink of the abyss as a result, the left-liberal daily To Ethnos warns: » more

The major European states, above all Germany and France, are concerned only with their own interests and driving Europe to the brink of the abyss as a result, the left-liberal daily To Ethnos warns: "The joint house of the Europeans threatens to collapse, and it's not Greece, Portugal or Spain that are to blame but Europe's political leaders who have managed to destroy European solidarity. ... The biggest portion of the blame goes to the leaders of the most influential countries with the strongest economies, which at the same time were those who profited most from the founding of the European Union. They have left the single currency and the Union defenceless for the sake of their national interests. This crisis will end, but it will leave deep scars on Europeans' consciousness. ... Unfortunately Europe's current leaders are proving unable to free themselves of the constraints of domestic politics."

In a survey carried out by the daily Le Monde only ten percent of the respondents said they wanted the next French president to focus mainly on bolstering the Franco-German axis. This is above all a result of the crisis, the left-liberal daily To Ethnos concludes: » more

In a survey carried out by the daily Le Monde only ten percent of the respondents said they wanted the next French president to focus mainly on bolstering the Franco-German axis. This is above all a result of the crisis, the left-liberal daily To Ethnos concludes: "The results of this survey come as a big shock to Nicolas Sarkozy, but also a nasty surprise for the Germans. It's obvious that the German approach to dealing with the European debt crisis has spurred hostility towards the Germans all over Europe, not just in countries like Greece, which has been enslaved financially and deprived of part of its sovereignty. ... But the truly astounding result was that just three percent of the Socialist party supporters want the new president to focus on the Franco-German axis."

Only 304 of the 330 MPs of the ruling coalition in Germany voted in favour of the second bailout package for Greece. This highlights the doubts about the policy adopted towards the debt-stricken country, writes the conservative Frankfurter Allgemeine Zeitung: » more

Only 304 of the 330 MPs of the ruling coalition in Germany voted in favour of the second bailout package for Greece. This highlights the doubts about the policy adopted towards the debt-stricken country, writes the conservative Frankfurter Allgemeine Zeitung: "For now a great majority can still be rustled up in the Bundestag who believe the Chancellor's story of the lesser evil - against the advice of a number of economics experts and the widespread and growing scepticism of the general population. Representatives of the people in particular are not immune to this scepticism. … So the fight to save the euro looks increasingly like a war on two fronts that will last indefinitely and holds the double risk of collapse: for how long can states like Greece stick to the required and in many aspects illusionary reform policy, which in some cases hasn't even begun to be put into practice? And for how long will the taxpayers in the creditor countries be willing and able to finance this kind of political-economic large-scale experiment. … But neither the Social Democrats nor the Greens came up with a better option than approving the government's motion."

At the behest of the EU Commission and the IMF, 160 German tax officers are to be sent to Greece to help it build up a modern financial administration. The conservative Sunday paper Welt am Sonntag paints a picture of the upcoming occupation: » more

At the behest of the EU Commission and the IMF, 160 German tax officers are to be sent to Greece to help it build up a modern financial administration. The conservative Sunday paper Welt am Sonntag paints a picture of the upcoming occupation: "160 people have already volunteered to form part of the special task force that will be parachuted into Athens to teach the Greeks how to pay their taxes. … Most Greeks have never paid taxes in their life and are understandably scared at the prospect. Many believed, mistakenly, that the sums named in the letters from the tax authorities referred to money they would receive from the state. So for a transition period of two years the taxes are to be declared as bribes, since the Greeks are more accustomed to paying those. … The German tax operation has an ambitious goal: each Greek will be assigned his or her own personal German tax officer, who is to be welcomed into the family, clothed and fed. But then the Greeks are allowed to deduct them from their income tax as an extraordinary expense."

Germany is not only home to politicians like Schäuble und Merkel, who are being cast as "the enemy" in Greece at present, but also to Goethe, Marx, Brecht and Thomas Mann, columnist Xenia Kounalaki reminds her compatriots in the conservative daily Kathimerini, warning them not to overgeneralise in their anger at the Germans: » more

Germany is not only home to politicians like Schäuble und Merkel, who are being cast as "the enemy" in Greece at present, but also to Goethe, Marx, Brecht and Thomas Mann, columnist Xenia Kounalaki reminds her compatriots in the conservative daily Kathimerini, warning them not to overgeneralise in their anger at the Germans: "Those who are familiar with German culture cannot understand this rage. To see the remarks of Finance Minister Wolfgang Schäuble or the annoying articles of the tabloid Bild as representing the attitude of the entire German people or the entire German press is just as unfair and overgeneralising as the stereotype of the lazy Greek who sits around in cafés all day and lives beyond his means. … The way some people are trying to reduce the tradition of an entire country to such unfortunate comparisons as: today's Germany - the fourth Reich, Goebbels - Scäuble, Hitler - Merkel is simply absurd."

The fact that even a friend of Germany like President Karolos Papoulias has attacked the German Minister of Finance worries the conservative daily ABC: » more

The fact that even a friend of Germany like President Karolos Papoulias has attacked the German Minister of Finance worries the conservative daily ABC: "Of course it is also true that while Germany's popular press has committed barbarities like recommending that Greece 'sell its islands' or 'auction off the acropolis', the German politicians have always insisted on respect and circumspection. Meanwhile the Greek politicians have competed with the worst of the press in an orgy of anti-German hate tirades. The images of burning German flags or Merkel dressed in Nazi uniform certainly won't help to promote German solidarity with Greece. Primitive hatred is gaining the upper hand against the European friendship which few in Greece embody as President Papoulias does. The Union was forged after two major wars precisely to quash hatred. Let us not allow hatred to be exploited once more to pit us against each other and divert attention from our responsibilities and failures."

In the campaign for the French presidency both candidates should be clear about the fact that it's Germany that calls the shots in Europe, the left-liberal daily El País observes: » more

In the campaign for the French presidency both candidates should be clear about the fact that it's Germany that calls the shots in Europe, the left-liberal daily El País observes: "The economic and financial crisis affecting part of Europe is changing the rules of domestic politics and forcing even Paris to recognise that notwithstanding France's fondness of casting itself in the most flattering role, the one who calls the tune is Ms. Merkel. And the candidates should bear this in mind. … Nicolas Sarkozy and François Hollande share the same obsession: Germany. But for now Hollande is presenting himself as the stronger option vis-à-vis the Chancellor. Since he has no miracle solution to the Eurozone crisis at hand, the Socialist candidate is vowing left, right and centre that with him at the helm the situation would change; that he will compel Ms. Merkel to renegotiate the fiscal compact she has just foisted on her partners."

Germany will not be able to lead the EU from the crisis without the help of the French and the British, writes the British historian and commentator Timothy Garton Ash in the weekly magazine Der Spiegel, comparing Europe with a car chauffeured by an unwilling German Chancellor Angela Merkel: » more

Germany will not be able to lead the EU from the crisis without the help of the French and the British, writes the British historian and commentator Timothy Garton Ash in the weekly magazine Der Spiegel, comparing Europe with a car chauffeured by an unwilling German Chancellor Angela Merkel: "So far Germany is proving a reluctant, nervous and not very skilful driver. ... We may laugh at Sarko's antics in the front passenger seat ("Non, non, ma chérie! Tout droit, tout droit!'), but he's got the right idea. For David Cameron to consign Britain to the back seat - if not the dog boot - of the European car at this critical moment is folly beyond words. Earlier this week, Merkel again stressed how much Germany wants to see this fellow north European, free-market liberal country return to the heart of European affairs. ... It would be so short-sighted, so plain dumb, for Britain to abandon Germany to its own devices just when it finds itself playing such a decisive role in Europe - a role that it did not seek, for which it is ill-prepared and in which it needs all the help that it can get."

Because Athens will not cut pension supplements it must present the troika with alternative proposals within 15 days for how to cut its spending by the demanded 300 million euros. But economising is a German one-way street, writes the business paper Il Sole 24 Ore: » more

Because Athens will not cut pension supplements it must present the troika with alternative proposals within 15 days for how to cut its spending by the demanded 300 million euros. But economising is a German one-way street, writes the business paper Il Sole 24 Ore: "The European answer to the mismanagement in Athens remains one-sided: economise, economise, economise - along with brutal enforced reforms. This punitive ideology could sooner or later produce a violent backlash - both at a political and a social level. This reaction could spread like wildfire to other Eurozone countries subjected to similarly harsh austerity measures. The one-way street recipe which demands great sacrifices without offering prospects of development or the hope of rapid improvement could lead to a disastrous short circuit in the Eurozone, which has fallen victim to Germany's one-sided perspective."

Spain would do well to submit to the austerity policy dictated by Germany, writes the conservative daily ABC: » more

Spain would do well to submit to the austerity policy dictated by Germany, writes the conservative daily ABC: "Europe has banned Keynes by decree and the opponents of austerity are pulling long faces. Like Margaret Thatcher 30 years ago, Angela Merkel has imposed her austerity fundamentalism on that wasteful gene of social democracy that always finds an excuse to spend more: in times of plenty because money abounds and in times of recession to stimulate growth. But the German chancellor is a cautious woman who has been brought up to fear the inflation her nation incubated during the times of the Weimar Republic, the precursor to National Socialism. And the creed of her leadership is implacable: first balance the budget and then we'll see. ... Spain would do well to adapt to this policy; besides, it has no choice. Reforms or bankruptcy: there is no other option. ... Only the economy that keeps the Europe engine running, or in other words Germany, can set the course. ... He who pays the piper calls the tune. Perhaps there's a plan B, but it won't be executed until plan A has been accomplished."

In demanding an EU budget commissioner for Athens Berlin is making itself even less popular, warns the conservative daily Die Welt: » more

In demanding an EU budget commissioner for Athens Berlin is making itself even less popular, warns the conservative daily Die Welt: "A budget commissioner alone is of little use. ... Greece must set up an administration and a tax authority that meet Western standards. At the same time, like everywhere else in Europe, a basis for sustainable economic growth must be created. Greece can only regain its self-determination through growth. Even with no budget commissioner the Greek state can neither function nor make its own decisions without foreign help. It is up to Athens to improve things as swiftly as it can. It may be doubted whether the German plan for temporary foreign control over Greek finances would prompt the Greeks to recognise their faults. But as a provocation the plan for a budget commissioner has worked perfectly. Germany has accepted the role of the bad cop.

Spain's government will adhere to its austerity targets, Prime Minister Mariano Rajoy assured German Chancellor Angela Merkel during his first official visit to Berlin on Thursday. Backing Merkel's policies in this way has more advantages than disadvantages, the conservative daily La Razón writes: » more

Spain's government will adhere to its austerity targets, Prime Minister Mariano Rajoy assured German Chancellor Angela Merkel during his first official visit to Berlin on Thursday. Backing Merkel's policies in this way has more advantages than disadvantages, the conservative daily La Razón writes: "Merkel is under enormous pressure to change her policy. This would have certain advantages for the Spanish government, too. But it should not be used as an excuse for postponing the necessary reforms. Moreover we Spanish have an interest in allying ourselves with the Germans. Their reforms can serve as an example to us and they refuse to pursue a policy the consequences of which are only too familiar to us. ... As regards foreign policy the best way to return to the heart of Europe is to build up a stable and loyal relationship - not to say axis - with Germany."

The current debt crisis demonstrates that European politics have barely changed since the 19th century and are still the preserve of the major powers, the liberal daily Sme concludes: » more

The current debt crisis demonstrates that European politics have barely changed since the 19th century and are still the preserve of the major powers, the liberal daily Sme concludes: "These heavyweights push through their opinions and their interests with no regard for the smaller countries and often to their detriment. One good thing is that the interests of the great and small are less frequently in fundamental conflict with each other these days. Yet for example the loss of sovereignty continues to be an awkward issue. ... Germany's role comes as no surprise. The Germans simply are the rich uncle who pays for everyone. So it's only logical that he should want to have more say about what others spend his money on."

Czech Foreign Minister Karel Schwarzenberg has warned Germany not to succumb to megalomania in its defence of the euro. Small states react sensitively when Merkel and Sarkozy decide policy between themselves and then merely inform the others of the result, Schwarzenberg stated in an interview with the German news magazine Der Spiegel. The conservative daily Lidové noviny welcomes the minister's clear words: » more

Czech Foreign Minister Karel Schwarzenberg has warned Germany not to succumb to megalomania in its defence of the euro. Small states react sensitively when Merkel and Sarkozy decide policy between themselves and then merely inform the others of the result, Schwarzenberg stated in an interview with the German news magazine Der Spiegel. The conservative daily Lidové noviny welcomes the minister's clear words: "Everything centres around Berlin. Only in theory are the other states equal partners. The only time they attract attention is when they fail to give the Germans their approval. Never has Berlin's attitude been so clear: 'Those who are not with us are against us'. ... Schwarzenberg is right to say that the euro is only one of several instruments, and that Europe would survive without it. Berlin has not yet decided what is to happen with the euro. Anyone who declares in such a situation that the only way forward is together with Germany and that other allies are unimportant is just being naive."

The cover picture of this week's US news magazine Newsweek features the German Chancellor along with the headline "Achtung! It's Angela" and accuses Angela Merkel of having intensified Europe's crisis with her hesitant stance. German author Peter Schneider agrees with this view in the left-liberal daily La Repubblica: » more

The cover picture of this week's US news magazine Newsweek features the German Chancellor along with the headline "Achtung! It's Angela" and accuses Angela Merkel of having intensified Europe's crisis with her hesitant stance. German author Peter Schneider agrees with this view in the left-liberal daily La Repubblica: "Cool Germany, the attractive and likeable Germany of the 2006 World Cup. ... That's what we were until yesterday. But now the image of the ugly German, the evil German has re-emerged. ... Conjuring up the image of the German baddie is doubtless a convenient excuse for those countries that need to consolidate their budgets and budget planning. Laying the blame on the nasty Germans is on the one hand the easiest way to divert attention from their own mistakes. ... But on the other Angela Merkel's European partners are right to accuse her of never saying what was expected of her at the right moment. This began with the Greek crisis. First she said that Greece shouldn't be helped and then that it should. The chancellor left the question pending for so long that the cost of bailing the country out tripled."

If each EU summit leads to more austerity measures Southern Europe in particular will plunge into recession and Euroscepticism will increase, the conservative daily Kathimerini warns: » more

If each EU summit leads to more austerity measures Southern Europe in particular will plunge into recession and Euroscepticism will increase, the conservative daily Kathimerini warns: "Germany-style disciplining doesn't appear to be the right weapon to protect European nations from poverty and insecurity. At the most recent summit the key words growth, solidarity and convergence weren't even mentioned - not even as goals. ... We see that democracy and the historical vision of a community are gradually disappearing from Europe. Euroscepticism will be the next step: what suffering nation will be willing to support a vague historical project rather than the urgent need to put food on the table and keep one's home warm? The anti-European mood will fall on fertile ground. ... But in the 21st century the Europeans can only rescue the great achievements of democracy and the social welfare state through unity and solidarity."

The story of how the euro was founded in a hurry has already been forgotten for the sake of holding up Germany as the big enemy, the daily Diário de Notícias concludes: » more

The story of how the euro was founded in a hurry has already been forgotten for the sake of holding up Germany as the big enemy, the daily Diário de Notícias concludes: "It's taking things too far to claim that Germany is trying to gain hegemony over Europe through stringent monetary and financial regulations, so it can triumph where armed divisions failed. This argument is causing a major stir but it is simply wrong. As Germany's reunification progressed the emergence of a highly competitive economy in the heart of Europe terrified its neighbours. ... So they came up with the idea of tying this economic giant to a common currency, as the inhabitants of Lilliput tried to tie up Gulliver, with the goal of tying its fate to deeper European integration. As hard as it may be for us to admit, Germany proposed a different path back then: first everyone should move towards tax harmonisation, deal responsibly with their public spending and then move cautiously towards a monetary union - that was based on a synchronised financial policy. But no one wanted to build the edifice on these foundations. The result: the first big storm is shaking the entire construction of the euro to its very foundations."

Germany continues to reject the idea of pooling the Eurozone's debts. Angela Merkel's hard line against euro bonds is good for Europe, writes the banker Georges Ugeux in his blog Démystifier la finance: » more

Germany continues to reject the idea of pooling the Eurozone's debts. Angela Merkel's hard line against euro bonds is good for Europe, writes the banker Georges Ugeux in his blog Démystifier la finance: "She went into politics to serve her country and her compatriots. For her, politics is a religion. She has principles and values, and even if she has had to compromise here or there, her actions have always been inspired by her convictions. She has a natural and healthy disregard for the lofty ideas of academics and advisors. She will not give in if she is convinced that Europe's interests and financial orthodoxy are in danger. ... I won't discuss Germany's method, which has annoyed its European partners more often than necessary. But Europe needs a compass, and a clear direction everyone can stick to. I don't know where we'd be if the German chancellor had heeded the reckless proposals of some of her European partners. Thank you madame ... and above all, hold your course!"

Leveraging the bailout fund is nothing more than a quick fix because saving the euro and Europe depends on Angela Merkel's willingness to allow the European Central Bank to become the lender of last resort, writes the liberal daily La Stampa: » more

Leveraging the bailout fund is nothing more than a quick fix because saving the euro and Europe depends on Angela Merkel's willingness to allow the European Central Bank to become the lender of last resort, writes the liberal daily La Stampa: "The real bailout plan has yet to be announced and it will be nine days [when the EU summit takes place] before we know more. There are widespread fears that Angela Merkel will continue with her strategy, which fits in with Germany's national interests and her own very personal election interests. Up to now those in the Eurozone's engine room, where the motors have ground to a halt, have only heard the Chancellor's droning No. But the kid gloves are slowly coming off to reveal the iron fist. ... Perhaps people are finally beginning to realise what kind of politician we are dealing with - unpredictable, inscrutable, stubborn - and above all who the leaders who want to save the euro and the European Community will be dealing with on December 9."

Germany has once more spoken out against euro bonds at the meeting of the Eurozone finance ministers in Brussels, and rejected plans for involving the European Central Bank fully in the euro bailout. Berlin is deliberately ignoring reality, writes the daily Delo: » more

Germany has once more spoken out against euro bonds at the meeting of the Eurozone finance ministers in Brussels, and rejected plans for involving the European Central Bank fully in the euro bailout. Berlin is deliberately ignoring reality, writes the daily Delo: "The problem with the German logic is that previous attempts at a solution haven't worked, and the fire could spread even further. If they rely on austerity measures alone, the indebted countries will neither become more competitive nor will they free themselves of debt. In addition, stricter budget controls and sanctions only function in the long term and have no impact on today's acute crisis. ... Only the European Central Bank can offer measures to help in the short term. ... Is Germany's fear of inflation and a loss of independence for the European Central Bank more justified than fears of the collapse of the entire system, with all the unforeseeable repercussions that implies?"

The Europa-Union Deutschland, a German pressure group that supports further EU integration, handed the German tabloid Bild its "European Thistle" award on Saturday for its negative reporting on Greece, which Stefan Niggemeier claims in his blog amounts to incitement of the masses: » more

The Europa-Union Deutschland, a German pressure group that supports further EU integration, handed the German tabloid Bild its "European Thistle" award on Saturday for its negative reporting on Greece, which Stefan Niggemeier claims in his blog amounts to incitement of the masses: "For months now 'Bild' has worked systematically to ensure that no one thinks of the Greek people without the word 'bankrupt' automatically popping into their minds. ... 'Bild' is systematically making not just a state but also everyone who belongs to it seem despicable. This is a form of incitement of the masses. The resentment, or at least the reflex, was no doubt already there. 'Bild' simply stoked it, nurtured it and intensified it for its own profit. The more 'Bild' stirred up resentment, the greater the resentment became, and the greater the resentment the more 'Bild' came across as the voice of the people. Imagine if the argument that stirring up resentment wasn't so bad because it was already there anyway were applied to what happened in the 1920s and 1930s. The anti-Jewish sentiment was already there, too."

Whether it's for leveraging the bailout fund, resisting the introduction of euro bonds or demanding budget discipline, the Germans will soon be the scapegoats for the entire euro crisis, the conservative daily Die Welt observes: » more

Whether it's for leveraging the bailout fund, resisting the introduction of euro bonds or demanding budget discipline, the Germans will soon be the scapegoats for the entire euro crisis, the conservative daily Die Welt observes: "For years the op-ed columns in Germany and abroad have been demanding that the Germans finally take on more leadership in the euro crisis. Now Angela Merkel has done just that everyone's still grumbling. In the UK some commentators are already talking of a 'Fourth Reich' in the making. The idea: what the Germans failed to accomplish in two world wars they're now achieving with the euro crisis: securing hegemony over Central Europe. The Junkers and Barrosos are annoyed because Merkel simply doesn't want to pay all of the Eurozone's bills. ... In France, too, Germanophobia is spreading. ... That doesn't mean Germany must give in to the pressure. But like every big power we must clearly state where we stand and avoid giving the impression that we always know better than the rest. Then it will be easier for us to accept one of the lessons of the American experience: big powers are never loved."

The Netherlands has changed its negative stance on euro bonds, as Finance Minister Jan Kees de Jager announced earlier today. The Germans continue to oppose euro bonds, but austerity is the wrong approach in the current situation, the left-liberal daily De Volkskrant warns: » more

The Netherlands has changed its negative stance on euro bonds, as Finance Minister Jan Kees de Jager announced earlier today. The Germans continue to oppose euro bonds, but austerity is the wrong approach in the current situation, the left-liberal daily De Volkskrant warns: "First they said there was no need for more money, then the plan was for the Chinese and Indians to invest, and now that that might not happen after all Germany and its cronies want to call in the IMF. With all this going back and forth it remains unclear if additional money will be made accessible to countries like Italy and Spain to give them a temporary financial respite. As a result we're facing a situation in which Southern Europe adheres to its part of the agreements and starts introducing reforms and austerity programmes, while Northern Europe fails to make the money available that will allow them to continue on this path. It could be that strategic considerations are prompting Germany to wait before pulling out its wallet: first German discipline, then German money, the tactic seems to be. But the Germans now have little time left to prove that they're willing to make a substantial contribution to the euro bailout."

The euro crisis offers Europe the chance to become a democracy among neighbouring states rather than being a Europe of bureaucrats, writes sociologist Ulrich Beck in the left-liberal daily The Guardian: » more

The euro crisis offers Europe the chance to become a democracy among neighbouring states rather than being a Europe of bureaucrats, writes sociologist Ulrich Beck in the left-liberal daily The Guardian: "We should have no fear of direct democracy. Without transnational opportunities for interventions from below, without European referendums on European themes that send a shudder through the ocean liner Europe, the whole enterprise will fail. Why not have the president of the European commission directly elected by all European citizens on the same day, which would thus for the first time be European in the strict sense? ... How is a European democracy possible without disenfranchising the national parliaments? Assuming one recognises that implementing democratic rights involves and requires many paths, can the democratic empowerment of a cosmopolitan Europe be accompanied by a strengthening of its national democracies in the member states? The answer has to be that new Europe would not follow the model of German euro-nationalism but would be an emerging European Community of Democracies. And sharing sovereignty becomes a multiplier of power and democracy."

With their linguistic blunders the German politicians are behaving like bulls in a china shop in the debt crisis and stoking fears of an over-strong Germany across Europe, Michael Spreng writes in his blog Sprengsatz: » more

With their linguistic blunders the German politicians are behaving like bulls in a china shop in the debt crisis and stoking fears of an over-strong Germany across Europe, Michael Spreng writes in his blog Sprengsatz: "Fear of Germany ... can quickly turn virulent when prescriptions for cutting spending are accompanied by arrogant or insulting words. ... One of the worst remarks, which fortunately also met with an indignant response from his own faction, was that made by the chairman of the CDU/CSU parliamentary group Volker Kauder: 'Now all of a sudden German is being spoken in Europe', which was shortened to 'Europe now speaks German'. ... The nastiest remark, made by provincial demagogue Alexander Dobrindt, secretary general of the CSU, luckily went no further than the German border. Commenting on EU Commission President José Manuel Barroso's euro bond proposals he said: 'Barroso is turning himself into a soldier of the Dolce Vita states'. He could hardly have come up with a more all-embracing insult; Guido Westerwelle's talk of 'late Roman decadence' was almost harmless by comparison."

German Chancellor Angela Merkel has harshly criticised the plans for introducing euro bonds. This position shows a lack of solidarity and is increasingly anti-European, the left-liberal daily La Repubblica complains: » more

German Chancellor Angela Merkel has harshly criticised the plans for introducing euro bonds. This position shows a lack of solidarity and is increasingly anti-European, the left-liberal daily La Repubblica complains: "The way in which Germany is controlling the EU is taking on ever more worrying dimensions. The disturbing thing about the Merkel government's strategy is the grim determination with which it clings to it in the euro and debt crisis. More than an idea, it's an ideology deeply entrenched in German economic culture that goes back to the phase between the two world wars. According to this doctrine each state must clean up its own backyard before it can expect international cooperation and solidarity. In the eyes of the proponents of this doctrine, international institutions, including the European Union, are not meant to support a common policy but above all serve the purpose of reciprocal supervision."

Germany is increasingly calling the shots in the European debt crisis, which means the EU has not changed at all in structural terms, the left-liberal daily Népszabadság comments: » more

Germany is increasingly calling the shots in the European debt crisis, which means the EU has not changed at all in structural terms, the left-liberal daily Népszabadság comments: "'We must behave like the Germans', Nicolas Sarkozy said when he announced austerity measures in France at the end of October. This wasn't a joke. Against the backdrop of the crisis the European Union is increasingly being steered by Berlin. And it will probably have to be adapted to the German model to remain functional. This is making many countries nervous. In view of the rising number of technocratic governments, which are not least a consequence of German dictates, complaints about the lack of democratic controls is are gaining momentum. The critics forget, however, that the EU has always been led by the elites."

Backed by Germany's Bundesbank German Chancellor Angela Merkel has declared war on the other EU states, writes the conservative daily The Times: » more

Backed by Germany's Bundesbank German Chancellor Angela Merkel has declared war on the other EU states, writes the conservative daily The Times: "The Bundesbank policy on the euro crisis is to present the other countries of Europe with a stark ultimatum: either they accept German economic directives, German monetary theories, German financial practices and even governments imposed by Germany as part of a draconian regime to deal with national insolvency. Or they must face financial chaos and expulsion from the eurozone, under a new exclusion procedure now demanded for nations that refuse to submit to German rules."

Two new books on the Germans are supposed to help people understand how the EU has become so German, writes columnist Georg Diez on the news portal Spiegel Online: » more

Two new books on the Germans are supposed to help people understand how the EU has become so German, writes columnist Georg Diez on the news portal Spiegel Online: "In recent weeks Germany has won the Second World War. Whoops. Did I spill the beans there? Naturally not with weapons, and not the Germans of back then. We, the new and good Germans, have won it with our billions. ... And this is why now, in a bid to convey a sense of meaning in the crisis, we have a hefty book inscribed with the title in gold letters: Die deutsche Seele (The German soul), so that we can understand exactly what it is between Abendbrot [cold supper], the abyss and work mania on the one hand and Winnetou [a reference to the Karl May classic Winnetou and Old Shatterhand], sausage and inner conflict that makes us so German. ... 'The German Genius' is the title of an almost 1,000-page, far lighter but pretty fantastic book written by the British author Peter Watson in which he expresses his admiration of German culture without breaking out in goose pimples - he describes astutely and coolly how the present has been constructed according to the German model. ... So are these the books we need to culturally cushion our EU triumph? On the inside an eerie soul; on the outside all-round genius? It helps, of course, if we are no longer perceived as the fearful Germans, the foolish Germans, the dumb Germans. But on the other hand, who are we really? We are the technocrats carrying Goethe with us everywhere we go."

Many offices and shops are remaining closed in Spain today because employees are taking Monday off since Tuesday, All Saints' Day, is a public holiday in the country. And the public holidays on December 6 and 8, when the days before and after are also often taken as holidays, are not far off. The bridging days are making the country seem so unproductive in the eyes of the North that German Chancellor Angela Merkel will no doubt ban them soon, the conservative daily ABC fears: » more

Many offices and shops are remaining closed in Spain today because employees are taking Monday off since Tuesday, All Saints' Day, is a public holiday in the country. And the public holidays on December 6 and 8, when the days before and after are also often taken as holidays, are not far off. The bridging days are making the country seem so unproductive in the eyes of the North that German Chancellor Angela Merkel will no doubt ban them soon, the conservative daily ABC fears: "The bridged days are a social construct the preservation of which is threatened by European Calvinism. ... Spain's creditors are frowning about our work habits and any day now they are going to tell Angela Merkel to ban this licentious custom. Not in Germany, of course, but in Spain, where Ms Merkel can give orders without having to convince parliament first. The Protestant view on the productivity of the southern Europeans is pretty stereotyped, like the fable about the ant and the grasshopper. We are naturally the grasshoppers who sing while pumping the ants for money."

Germany's dominance in Europe is so great that Slovakia had no choice but to agree to the extension of the euro bailout fund, writes the nationalist Catholic daily Nasz Dziennik: » more

Germany's dominance in Europe is so great that Slovakia had no choice but to agree to the extension of the euro bailout fund, writes the nationalist Catholic daily Nasz Dziennik: "Football is a simple game; 22 men chase a ball for 90 minutes and at the end the Germans always win', the former top-scoring striker of the English league, Gary Lineker, once quipped. The confusion that currently reigns in the Eurozone countries over the extension of the euro bailout fund shows that democracy in the Union increasingly resembles football in the times of Gary Lineker. ... In the fight with the German leadership the Slovaks didn't have a chance. To paraphrase Gary Lineker you could say that EU democracy is a system in which 27 EU states reach their decisions independently, and in the end they all dance to Germany's tune."

The Bundestag's decision on the euro bailout fund shows that despite its reputation Germany is ready to incur high financial risks in support of the euro: » more

The Bundestag's decision on the euro bailout fund shows that despite its reputation Germany is ready to incur high financial risks in support of the euro: "Nevertheless, this commitment contrasts strangely with the country's image abroad. In many European capitals Germany is considered stingy, indecisive and egoistic. The German experts at the European Central Bank are considered troublemakers because they're not willing to go along with an unconditional opening of the purse strings. In Athens in particular. There, 'Merkel' has become a swear word. Angry demonstrators regularly protest against the alleged 'financial nazis' in Berlin. Yesterday shows that these accusations are unfounded. ... Germany is better - and more European - than its reputation."